I agree with the others - that's your barrel trimmer I would say. Having said that, I fall very firmly into the barrel trimmer camp.
If you do it right it has many advantages over the sanding method in my opinion, but the key to it is sharp cutters at all times. I made a little jig to fit on my Pro Edge, so I can touch up the cutters in seconds as often as necessary. Trimming with blunt cutters is no different to turning with blunt gouges, and they need sharpening frequently, especially as most of the time they are dealing with end grain.
Your description of "squashed/twisted" makes perfect sense - what your trimmer has done is torn and knocked over the tips of the end grain as a result of being blunt - a bit like a cornfield after a storm. Keep the cutters on your barrel trimmer sharp and you'll be fine - which by the way is much easier to maintain if it only has four blades, as opposed to the horrible ones from China which generally have six, that are impossible to keep sharp.
The best one I've found is the Eolution9 from Turners Retreat - but I grind mine a little first, so that it puts a slight concave cut on the end of the blank - which not only makes it easier to cut end grain, but also means the pen goes together more easily too.
(I hope they pay commission - that's twice I've recommended their products on the Forum today)