It means the card doesn't measure 2.5x3.5 and they've already tried to get PSA to grade it. It would be put in an Authentic slab if you asked them to, presuming it's authentic (which the rough cut would help prove). Or, it might pass through on a submission with a different grader.
It is considered a huge negative to have an undersized card, not a valuable variation. However, for raw collectors that want an attractive one at a fraction of the price, undersized can serve those goals.
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PWCC: The Fish Stinks From the Head
PSA: Regularly Get Cheated
BGS: Can't detect trimming on modern
SGC: Closed auto authentication business
JSA: Approved same T206 Autos before SGC
Oh, what a difference a year makes.
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