That's not puppet warp but I will show you how to use it. This tutorial is all you need to know. That Sage was made with ancient Hawaiian secrets.
edit: One thing to add to this Tutorial. ALWAYS convert the thing you are Puppet Warping into a Smart Object first so you can re-edit the Puppet Warp latter on. If it isn't a Smart Object, then you cannot edit the Puppet Warp. You will have to Puppet Warp it again.
edit edit: For example in the video tutorial, Marty, who is a great Photoshooper and teacher, put the right wrist in front of the left arm. Once he committed those changes, if wanted to make the right wrist go behind the left arm, he couldn't. If he converted it to a Smart Object first, he could go back and re-edit his existing Puppet Warp.