A well designed amp has a clip protection built in. But we don't know what he was running, and some amps are not designed as well as others.
A solid state amp without proper clip protection circuitry will flat line the peaks. I've measured it on an oscilloscope.
True but this is called a square wave. Sounds fuzzy and great, but isn't harmful to drivers. Some pedals do this on purpose.
Still AC.
Amps can "leak" DC if they aren't working properly but a clipped amp is still outputting AC.