Maybe. I do a lot of Photoshop work and I don't see much in the way of clipped edges or haloing from an extraction filter. There were a lot of wire photos of this little encounter and it was big news at the time. If it is altered, then it's merely a squish on an image like this one. Nor are such exchanges uncommon in the Middle East, which was the excuse at the time.
The hair isn't clipped against the background, the anti-aliasing isn't out of line. Either way, this little encounter was every bit as bad as Obama's bow.