HA! I found it kids. It is a FAKE error. After looking at the bill zoomed in, I noticed a light fold line and the dots connected perfectly. As my “suspicions” indicated, the bill was (somehow) bled and folded to acquire the fake, extra federal reserve seal. Whom ever did this did a pretty good job but left some evidences showing which concluded to it’s authentication as a fake error.
Below, you will see my pictures of the closeup. One will be the normal image and the other a “messy” color editing I did to show and compare where the similarities of the fakers mistakes were. The white line running in between the colors indicates the fold. The colors indicate where the bled ink touched with the rest of the bill, thus creating very light duplicate areas of the other side.
It is weird I got this from a bank, unnoticed (obviously) and I kept it for almost 4 years now in my collection. However, I don’t mind because it was free and I like it as a study piece. So there ya go. It is a FAke error note on a real federal reserve note.