So yes, misfaced, then caught during the first sorting and the stamp canceled with the most convenient device. All before the era of tagging, manually faced, run through a single-head machine, then sorted and pitched into pigeon holes a number of times until it got to its destination, etc.
Perhaps a more common reason to see two close-timed cancels from the origin town is a machine misfeed. Here both are at 9:30pm:
