So any sheathing edges that don't land on standard framing (studs, plates, windows/doors) need to be supported by blocking. All edges of wall sheathing must be supported by and nailed to framing. This edge didn't land on plates, so install blocking to support it.

Do you need blocking between studs?

In some situations, blocking is required as a fire-stop where a stud bay extends between floors. ... Without fire-stops, a fire could quickly spread from floor to floor. Blocking and extra studs also are used to catch the edge of the drywall at corners and in places where the stud spacing doesn't work out perfectly.

Do interior walls have blocking?

Both interior and exterior wood wall construction commonly includes layers of wood structural panels (plywood or OSB) and/or gypsum wallboard. ... In these conditions, wood blocking may be necessary for taller walls.