That looks like a filter bypass valve malfunction. No wavy pleats could lead to the metal core collapsing like that. There are no pleats on earth that will prevent that much force destroying an oil filter if the metal core gets collapsed from too much delta-p across the filter.
My thought was not that wavy pleats are going to cause an excessive pressure drop across the filter but that they are weaker than straight pleats and may pre-dispose a filter to collapse under certain conditions. Pity I didn't take photo of the pleats with that perforated sleeve removed. The pleats were folded hard flat on top of the inner sleeve and the sleeve is quite thin metal and easily crushed. Once the pleats were folded flat on top of each other I think that provided enough pressure to squash the tube .
The bypass was fine, it's a simple spring loaded ball bearing although quite a small aperture. This is from a motorcycle engine with an unusually high oil flow rate and pressure. I assumed the bypass must have worked otherwise the minimal flow through that collapsed filter might have wrecked the engine. This happend 10 years back when I accidently over reved a cold engine. It hasn't happened since even with identical filters.