Have you seen the Org Chart sample, Org Chart Static ? It demonstrates searching the whole diagram.
To hide the rest of the diagram, which sounds as if it does not depend on the results of the search, I suggest you iterate over all of the Diagram.nodes and set each Node.visible if it is in the subtree of the selected node.
Something like:
var selected = myDiagram.selection.first();
if (selected == null) return;
myDiagram.startTransaction();
var subtree = selected.findTreeParts();
myDiagram.nodes.each(function(n) {
n.visible = subtree.contains(n);
});
myDiagram.commitTransaction("hid rest of tree outside of selected subtree");