Yes, but then what? The replacement star error notes are caught and destroyed, then what happens? How are these replacement notes replaced?
They are replaced with an error-free sheet of star notes. When you print as much currency as the BEP prints, it's not unusual for certain sheets or straps to be pulled and shredded.
after shredding they give away for free to be tossed at parades in front of the white house or in front of the NYSE. Some street cleaners have reported finding unshredded bills within the mix.