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The short snorter substantiation in a bar is reminiscent of challenge coin checks; I wonder if they have a common ancestor?
Sometimes I wonder whether these Atlas Obscura articles are entirely made up, some kind of funny-if-it-was-true fiction.
Wikipedia has a whole section on notable short snorters :)

It is a pretty incredible story though isn't it.

That is what they should have called key signing for PGP. Short snorter parties would sound a lot more fun than key signing parties.
After reading the article I'm still kind of unsure what the process is. You meet a fellow pilot / famous person / rando and ask them to sign a $1 bill which you then attach by tape to your "short snorter". Maybe they ask what's going on, and so you sign a $1 and tell them to hold onto it always, because if you ask for it and they don't have it, they owe you a drink / $1. Is that how it works?
These days, and probably for the last 50 or 60 years, anything involving a snorter and rolled up bill would be associated with something other than signatures.