Wtf.. hellforge hammer hand axe..

Thats an .09 fused item. Allow me to explain. During excessive lagging on the servers these items would sometimes drop. Normally, Hephasto would've dropped the gnasher(unique hand axe) and a hellforge hammer. During these excessive lags, about 1% of the time the game would "forget" to drop the second item, when id'd it would have the stats of the other that was supposed to drop. This is how Wiz rings, ck ammy, soulflay gaunts were created. It's very hard to explain, so I'm sorry if this explanation is a bit weird, but that is how that item was created.

That's not it at all.

All you do is upgrade it using the Upgrade formula in the cube (Normal -> Exceptional), and it upgrades to a Hand Axe. Quest items are the lowest "quality" item you can get, so when you upgrade it, it upgrades to the first weapon it finds: The hand axe, since the 'Axe' category is the first alphabetically and the Hand Axe is the lowest form of them.

Try it yourself. You can do it with the Horadric Staff/etc. I seem to remember it not working on Khalim's Flail/Will though.