So you are saying the metal missing from above got scraped off, and folded back below? If so, there should be evidence on the coin of this under magnification. My guess might be stupid, but I just thought maybe the same thing in reverse happened on the die.
Looks more like a black-and-white photo to me. Might be a bright red penny. Photo is terrible. OP, invest in a few books, and an avatar photo. Your threads are getting tedious... Perhaps this can be your picture?
Free help is worth exactly as much as you paid for it. Out of curiosity do you own a pawn shop? I wonder why you have coins but need so much help.
Now now.. Can't we all just get along? Jeesh... Too much animosity. I see Profitman post often where he/she is actively searching for unique coins. We aren't all experts, and need the input of people who are more 'in the know'. Yours looks like PMD to me to be honest. Maybe if you got real down deep on the image, we could see if that piece is just folded over prior to punching, or if it's just gouged out of the coin. *** Edit *** After zooming in on your current picture, if you look at the opposite end of the groove (away from the folded metal), you can see a bead. To me, that is displaced metal from where a tool (or object) entered the material. On one side, it lifted a piece of the layer, on the other end, it left the wall of a crater with lifted edges. Just my opinion.