Who knows. Unless you were there at the time it happened you will probably never know. It could be any one of a thousand things. Does it really matter how?
It obviously mattered to me, I posted it here for a reason. Seeing how clean the cut was, I wondered if it may have happened in the printing process or sheet cutting.
Its PMD on a bill, I have seen it many times actually Canadian bills, not sure if it got stuck in an ATM and then pulled out tearing the corner off or what exactly. There is no way it could happen during the "minting process" I don't know much about modern bill printing.
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