There is blur too like a double exposure, one from the background lighting showing subject movement plus the frozen image from the flash. That would suggest the camera set a slow sync speed so that the ambient light would give some detail in the background but it gives this ghost image effect. Look at the left hand man's face and you will see what I mean.
I too noticed the odd shadow effect but I can't work that one out. It can't be a shadow thrown on the ground behind the people because the line is too sharp.
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