What Type Of Error Is This $1?

I believe your note was cut like this from a BEP issued sheet AFTER it left the printing facility and the Treasury.

One of the biggest arguments against selling uncut sheets to collectors is the fact that there are unscrupulous individuals that have been buying these sheets and making "errors" like yours and selling them online as "faux errors".

Others may have a different opinion.

I agree with the two previous opinions.

This 'faux error' only has a redeemable value of 50 cents, because it only has one complete serial number.
The other piece has zero redeemable value, because it would have one incomplete serial number.
So not a good idea to muck around with uncut sheets, the whole lot would have had a much higher collector value.

It looks like this piece has been guillotined and not scissored, because the cut edges are straight, but
the margins have a varying width, which lends credence to the fact that the original uncut sheet has been interfered with.

Pic has turned out quite nicely, despite the holder.

This note has a Cutting Error that affects its horizontal alignment and normally can be worth grading when in a high condition as they can be worth hundreds, but as others have stated it appears to be man made rather than a true error. Banknotes are printed in sheets, with margins separating the individual notes. When the cutting process is done well, the margins appear evenly spaced around the edge of the notes, and this is an important factor in the grade of a banknote. When the cutting is done exceptionally poorly, a Cutting Error can occur. Typically, in order to qualify for a Cutting Error, a small portion of the adjacent note must be visible or (when the error occurs at the edge of the sheet) a small portion of the note's design must be cut off.

If the serial number is from a known uncut currency sheet, that leads weight to it being made made by the way. Uncut sheets have serial numbers above 96000000. That way you can tell if someone is "creating errors" and hopefully save some money before you buy something that is not a true error. If you dont agree with the others opinion(s) that it is man made, Collectors and dealers who have error notes can submit them to PMG for certification under an applicable grading tier with "error" or the specific error noted under the Variety/Pedigree column on the submission form. There is no additional fee for this service. People on the forum are giving their opinions but ultimately its up to the holder to decide to get something officially looked at for a cost or not.

Faulty Alignment (aka Miscut) is a different error. Faulty alignment errors are characterized by once side of a note being properly centered, while the other is shifted to some degree. Shifting may be only minor or may be dramatic. These errors are relatively common and widely collected. https://papermoneyguide.com/currency_errors.html

Great Topic. Is it Not true that Most Bills with a serial number starting with 99 are from the U S Mint in sheets. ?

In the early days of sheet sales by the BEP (series 1976, 1981, 1985 & maybe others, too) you could find sheets that did not conform to the 99xxxxxx serial numbering that we see in the more "modern" era of today.

You just have to be careful and do your homework when buying notes with cutting errors. I'd be extremely leery of any error note advertised that has a serial number beginning with 99. I'd be cautiously leery of any other cutting error note no matter the serial number.

The online Sellers are pretty crafty at creating these things.