Fraction Note grading issue...

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I purchased an ungraded Fr. 1261 10 cent 4th Issue Fractional from a VERY respected auction house back in November - this was the discription:



Fr. 1261 10¢ Fourth Issue About New.

This Liberty fractional note has a very distinctive and pronounced blue right end. Only a very light vertical fold keeps this note from a higher grade.


The note was sent in to PMG on 12/3/12 and grading was finished today receiving the following grade:


40 NET - Repaired doh!




How could a firm like miss this in their comments?







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