Okay, first the chuckle. Obama was caught misspelling OHIO:
Then comes the media failure: The Washington Post quickly reported that the photo was a fake. (Down the memory hole now, but you can see a Washington Post tweet to that effect halfway down the page here.) That reporting was based on, apparently, nothing whatsoever. The Post later retracted.
What happened, it seems, is that the Obama campaign sent out a second photograph of him spelling the word correctly, and the Post reporter jumped to the conclusion that the first photograph must therefore have been fake. (Since no one ever respells a word correctly after making a mistake.) You can only make this kind of mistake when you’re in the tank.
Even after retracting, the reporters still held out the possibility that it might have been fake, writing “I don’t know if the first one is photoshopped.”