I worked at a large manufacturing co making stationery. The paper is cut exactly the same way by a very similar machine. If you look close, you can see the bright green light. That is a sensor to make sure everything is lined up perfectly. In the case of the paper, it was cut and stacked in huge sheets right off the presses, and then cut down to size like this fabric. I'll bet the fabric is done that way as well.

Those "scrap bags" that Moda sells are the end cuts from making layer cakes, as you see here in this video too.

I think the pinked blade would go through the many layers of fabric more smoothly and with less distortion than a straight blade... plus they don't have to worry about all the excess threads coming off the edges if they pink them. It makes sense to do it.

Wherever you bought it from will replace. It happened to me once.

If you contact the company, they are usually good to make it right for you. You have to inquire about it.
peace

This has happened to me too many times. I prefer to cut my own. I use the June Tailor Shape cut and a sharp 60 mm blade.

Wow that was an interesting way of cutting the layer cakes.

scrap bags
http://www.hancocks-paducah.com/SALE...cvgaAly38P8HAQ

https://www.walmart.com/ip/Moda-Scra...&wl13=&veh=sem

they must have an outlet store somewhere, or an employee enjoying overages
https://www.etsy.com/listing/4725689...M7waAt7k8P8HAQ

wow, that was so cool! I want those scraps!!!

Deb Strain, a designer for Moda, gets a lot of the cut offs sent to her. She comes to our sewing guild every year and brings a big box of them. She and the quilt shop owner package them in bags and sells them to us at a small price. We buy them and bring what we've made from them back the next time she comes. It is amazing what people make from them. I've made quilts, wall hangings, folded star wreaths,and several things from them.