Not graded, just put in a capsule by Highland mint.
They currently make stuff like this
http://www.highlandmint.com/2005worl...photomint.aspx
Or more commonly medal type items with dirt inside.
http://www.highlandmint.com/national...tkeychain.aspx
The Game used bat ones looked like this
http://www.worthpoint.com/worthopedi...used-119003378
And the sawdust was the leftovers from making the little slices of bat to frame with the photo. They had a COA with pictures on the back showing what they'd cut up.
These predate the "game used" cards, and probably inspired them.
And yeah, I think they should be beaten for cutting up that stuff.
Steve B