I can't speak for this particular incident, but the image has everything to do with the devil, and is commonly used even today. That you can't comprehend how a Jew would be offended by a characterization of Jews as devils is unfortunate.
I'm saying that the "horned" headdress probably originated with the artistic convention that arose from the mistranslation from Exodus . . . NOT from a desire to portray Jews as devils. In other words, it had an innocent origin, no matter how offensive it may seem in retrospect.
Consider also that this type of headdress was pretty well known in medieval and Renaissance fashion - again having not a thing to do with devils.