What effect is this

not positive, but I think it's a transition (maybe modified dip to color dissolve or something like that). I have a 3rd party "flashback" transition that looks real similar, but you might test out a few FCP transistions to see if a stock one is close to that.
 
Try Too Much Too Soon's flashframe transition which can be downloaded here:

http://www.mattias.nu/plugins/

Or you can try looking for Eureka's Vapor Across transition which used to be free. All the links I am finding for it now are bad though.

Good luck!
 
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