What is a Link cloaking?
The Link cloaking is a black hat SEO technique used by some affiliates. They are hiding a true destination of hyperlink through making a short and pretty looking URL from a long one. The short URL impresses the visitor and by clicking on the link he is transferred to another website.
The link cloaking is provided because it is a friendly practice for a visitor, affiliate identity is hidden, it boost a quality score and much more. Nevertheless, it is still a black hat technique.