Very soon after the news, I made a comment on my FB feed that it would be an impressive feat of engineering for it still be working 12 years later: as such, I consider it highly unlikely that this had been sitting like this for 12 years waiting for the right command.
Keep in mind the technology available in 2006. The subsequent video released which indirectly suggests it was shot 12 years ago was in 16:9. Now while it's possible, I struggle to believe that the footage is 12 years old. Put into perspective, in 2006, almost all video was still on tape. The iPhone had yet to be announced. Most non-professional video recording was still 4:3 in standard definition.
If you look at Banksy's bio on Wikipedia, he wasn't selling anywhere near £1m works back in 2006, far from it, he wouldn't have had the resources to create a relatively high quality video.
I'm pretty convinced that while the picture may be an legitimate screen print, the frame was created really quite recently.
My thoughts on whether it really was shredded (as opposed to being wound up in a hidden roll) is that it was shredded. The motion of the top and shredded bottom correlates too well for it to be two separate pieces, in my opinion of course!
Irrespective, the whole debacle is amusing.