What is this piece called and what is its purpose? It appears to be some type of support for the quarter panel. My main concern is can be it cut or bent towards the front of the car?
yep! they must have bent it out of the way doing panel replacement
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Yes as the others have said, it is a panel stiffener. A lot of times there is adhesive between that piece and the panel above it to give contact and support to the quarter panel above it.