Although your example is a bit more pronounced, the color bleed of the blue into the red on the US Flag is a very common "freak" of this and other similar Flag issues that utilized the Multicolor Huck Press. Unfortunately, these minor varieties are only considered "freaks" rather than errors and typically do not command any premium value.
As I understand it, the Huck Multicolor Press was in use for a relatively short period from 1968-1976. It was the press that ultimately caused the demise of plate block collecting as we used to know it, as stamps printed by that method required a strip of 20 stamps to make up a complete plate block (or plate strip, as it was known) and collectors upset with having to buy and store so many stamps abandoned plate block collecting in droves.
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