Is it? Because what i understood from the video was that he buys the paper from the Mint and prints $2 on them. I thought it made sense because Woz said "I am not sure if its the right president on the note". Woz even talked about high quality printers which he uses.
Nothing Woz says in the interview is false, but he's being very careful in what he says.
He buys uncut sheets from the treasury, pays a printer to make them into pads and so on, and then sells them to random people at a loss just for the fun of playing with their minds :-)
"By law it's legal tender" - true because they're genuine
"I get a printer [...] to make these pads" - they make them from genuine bills
"I'm not sure if it's the right President" - white lie, it is
"The serial numbers look suspicious" - yeah because they're sequential