I don't purport to know all the rules about the handling of American flags. (Most of what I do know, I learned in elementary school as we took turns hoisting, lowering, and folding the flag in a perfect triangular shape.)
I know:
I'm not sure what the occasion could be for this particular American flag display:

Celebrating American Flag Origami Day? (A new holiday perhaps?)
Whatever the meaning, someone in our neighborhood has maintained this flag display for the last few days.
It's interesting, but I think it's the wind that should take all the credit. Yes, that Texas wind can be quite creative.
But I don't think the West Hurley Elementary School teachers would approve. They would have sent us out in the elements to fold up that flag and bring it in.