How is that even possible!?

Mishearings are often very surprising! But even so, there’s often a perfectly logical explanation. In this case, the speaker does the following:

1. drops the /h/ in her and handbag
2. links the /r/ at the end of her to the start of handbag
3. drops the /d/ in handbag
4. changes the /n/ to /m/ in handbag because of the /b/ that comes after it
5. devoices the final /g/ in handbag so that it becomes /k/

Simple!