What Does the Star Represent On Notes

I believe that the star represents a restrike of the note because something was wrong with the original bill (which was destroyed). They reuse the same serial # but add the * to keep the serial # sequence intact.
 

the treasury department uses electronic readers to count the bills after they are cut and before they are wrapped in bundles before shipping to the federal reserve. When a note is found and rejected a star note of any serial number is inserted so the reader will skip that serial number and check for the next one. Sometimes when a series has changed all of the remaining star notes will be released into circulation and it is possible to obtain a bundle of star notes with consecutive serial numbers. These are highly prized by collectors because bundles are usually crisp uncirculated condition. exanimo, siegfried schlagrule
 

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