CO2 toxicity was the most common cause of blackout among hard hat divers in years past, inadequate ventilation of the helmet was the cause.
It still occurs sometimes, but more often than not now it is overbreathing a regulator, skip breathing, equipment that is not maintained or has been maintained incorrectly.
What they were reffering to in your class was also a common problem at the military dive school. Hyperventilating to improve breath hold can cause levels of CO2 (the CO2 within our system causes the stimulus to breathe) within the body to drop, if pushed to far the diver can actually blackout before CO2 has built back up enough to cause them to surface and breath, while during this breath hold the O2 levels in the divers tissue continue to drop. When low enough the diver can blackout from hypoxia.