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Wikipedia states the following:
"A cafe racer[1] (/ˈkæff reɪsər/kaff racer)[2][3][4] is a term used for a type of motorcycle, as well as the motorcyclists who ride them. Both meanings have their roots in the 1960s British Rocker or Ton-up boy subculture, although the type of motorcycles were also common in Italy, France[5] and other European countries. The term, which originally arose as an insult from motorcycle enthusiasts towards riders who they thought were playing at being a road racer but merely parked outside cafes,[6] refers to a style of motorcycles that were and are used for fast rides from one transport cafe[7][8] or coffee bar to another.[9]"
Over here until the naughties I always heard them called bike jackets with a mandarin collar. Don't know the Rossi fellows you are referring to but I get the jist.
The reason for the cut off sleeves may well have been damage. My dog once chewed the sleeves of one of my leather jackets and damaged them beyond repair.