It does appear that the coin took a hit judging by the displaced metal. It is damage. Keep up the hunt!
As others have already pointed out, this is an example of a bit of displaced metal due to the coin being whacked by something at one point. Still, it has rattled around in change for nearly fifty years and looks darn nice.
I politely disagree. I, as a C-R-H see lots of quarters, and many 65's and a lot of them are in much better shape, and don't have any at all major cracks like this one and have full or close to full Washington Hairlines. This is a less than average quarter piece.
