First off, Happy Holidays Everyone! Christmas came a day early this year with CRH'ing as I came across this great 1984 Lincoln cent cud! It's not in the best shape, but it is the most dramatic cud I've come across yet and I'll take it! I am also surprised this wasn't pulled out of circulation yet as it's clearly circulated for a good amount of time. This cud is also attributed on Cuds on Coins as CU-1c-1984-02. http://cuds-on-coins.com/lincoln-cent-cuds-1984/
If you're referring to the pitted area near the ONE, that is not damage, but instead the result of the planchet filling in the gap from the piece that broke off the obverse die to create the cud. Most larger cuds will display this.