Yeah, this effect has been around for a long time; probably impossible to document who first used it.
It's a great effect. Doesn't really matter what it's called, but it might be best to call it something other than a trill; as Pete pointed out it's not technically a trill and it could be confused with the 'Adderly trill' which is a different effect. I like your other term in the title, a 'shake'. Or 'wobble' is also a good term for it. There's another type of wobble than can be achieved with alternate fingerings, by alternating between the standard fingering & alternate fingering.
Good stuff Demarious (apologies if I spelled your name wrong); keep posting these blogs!
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