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I've seen this done many times and I was wondering if this kind of "effect" has a name and if there is an easy way to do this in photoshop.
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Looks like Gaussian Blur to me, applied on a duplicate of the Layer (ideally Smart Object instances) with a Layer Mask or a Vector Mask.
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Tried to replicate your effect but still doesn't get the original effect. It seems that it's also using some zoom there
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Unlink the Layer Mask, select the Layer (once again: ideally a Smart Object) and scale it up by invoking Edit > Free Transform (cmd-T) and shift-alt-dragging one of the corner points.