Does it in this sentence refer to "what"?
Context:
IT RESEMBLED the Oscars, only with physicists rather than actors. Three hundred of them were gathered in a ballroom in Arcadia, California; another 100 were connected by video link. All of them were waiting for the opening of an envelope.
What the event might have lacked in glamour (sorry, physicists), it made up for in drama. In contrast to the Hollywood awards, the note inside would either make them all winners, or all losers.
http://www.newscientist.com/article/mg21929350.900-gravity-ripples-the-race-to-catch-the-next-wave.html