The stamps were printed in large sheets of 400 and then cut into smaller panes of 100 stamps before sending out to the post offices.
In this case the guy running the cutting machine hadn't had his coffee yet and missed the cutting guideline (or maybe too much coffee). What you see at the bottom of this stamp is the top of the first stamp from the pane below.
That's a triple error, misperfed, miscut, and misaligned precancel. Maybe this all happened during the San Francisco earthquake.
n.b. "error" is not the correct term here, freak is more proper. Error normally implies a major error, imperforate, invert, missing color, etc.
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