I'll throw something out there that I ran across recently..
I was watching video interview with the Treasury Department about mutilated currency and its "recovery".
They showed termite damage and it looks very similar to many of the Cooper bills, those holes look exactly like termite damage.
That got me thinking, what if the money was stashed in an attic, garage or similar environment for years and termites got to it in its original bundle form, leaving the rubber bands preserved and intact but eating away the money.
The money discovered severely damaged couldn't be used or sent to Treasury as damaged for replacement. It was rendered useless and discarded ending up on TBAR enduring some further erosion and chard dispersion.
I found that the Portland area does have invasive house termites and they love to eat paper..
This is a bill eaten by termites, but a tight bundle may produce more damage at the edges..
Circular holes are indicative of termite damage.