More research on this is definitely required...
45 STAR PARADE FLAG with UPSIDE-DOWN STARS, SPANISH-AMERICAN WAR-ERA, 1896-1907
Large 45 star American parade flag, printed on cotton. Note how the stars are arranged in staggered rows, but that their vertical orientation is upside-down. Whether or not this had any particular purpose is unknown. Probably it did not. Since there were no regulations concerning either star configuration or positioning until 1912, it is likely that the maker of this flag did not feel that any particular star position was “right-side-up”. The designer might have simply liked the look of the stars with two arms up throughout instead of one. In any event, this was not the norm and it makes for an interesting feature.
Utah became the 45th state in 1896. It had been attempting to gain statehood for many years, but remained a territory, primarily due to the fact that the Mormon Church and Utah authorities continued to be openly tolerant of polygamy. In 1890, Mormon Church President Wilford Woodruff published a manifesto that denounced the contract of “any marriages forbidden by the law of the land”. This gave way to Utah’s 1896 acceptance. The 45 star flag was generally used from that year until 1907, when Oklahoma joined the Union. Due to the Spanish-American War (1898) and Teddy Roosevelt’s famous world tour of the “White Fleet” (launched in 1907), this was an extremely patriotic period.