Actually, something similar had happened to me (not that I have any sympathy for her)..
After being through both the USAF and US Army, I had forgotten that I had a delayed University Loan (was around $10K)...
About 2 months after I received my 2nd passport (renewal).. I had gone to the Embassy in Tokyo (had to get something or another stamped to get married).
The Japanese worker @ the window asked for my passport, I handed it over (no problem ;))
She then took out a device/tool than crunched it on my passport that poked holes through it diagonally that spelled out “CANCELLED”
She just invalidated my 2 month old passport >.<
Long story short, she hates foreigners ;) (she actually had a big smile on her face as she destroyed my 2 month old passport)... >.<
**than=then**