Couple things about the front reserve parachutes...
This is a simplistic description, but a round parachute is made up of a series of long panels, or 'gores', that are sewn together vertically, into a circle. They're kind of triangular shaped, which gives the parachute its domed shape. There is no part that is technically known as a 'fold', but during packing the panels are folded/stacked ('flaked') on top of each other sort of accordion style. At this point the appearance is long and thin, and those stacked panels would be what was referred to by 'folds'. If they were sewn together along the edges, I'm surmising that's what Cossey did to hold them together to make the 'dummy' reserve easier to repack. To cut half of it off to reduce bulk, you could either cut some of those panels out vertically, which would be hard to do and keep all of the lines, or you could cut the top half off of it the other way.
There wasn't a standard marking for a dummy reserve, but it would be standard that it would be marked somehow, either by the red X, the whole thing painted, or I remember these cloth tapes printed 'Training Device - Do Not Jump' that were sewn on. It would definitely be clearly marked somehow so that it wasn't mistakenly used on a live jump.
It would definitely have a ripcord. That's just standard, how they're held closed and opened. Being hand deployed, what it didn't have was a pilot chute.
Pulling the ripcord and opening the container would not render it worthless. One of the flaps has cloth loops. The other flaps have grommets. Closing the container, the loops go through the grommets, then the ripcord pins go through the loops. If you wanted to hold the money in it, it would be pretty apparent how you could use parachute lines to just tie it shut.
Looking at the closed container, on the ends of it are handles made of the same material the container is. (Those handles are what those non-pink lines were attached to.) It would be easy to tie lines onto those handles and around your body or onto the main harness.