It looks to me like a lamination that started and then gave up. Super Dave picks up on the lapel area. That shows pretty hefty mishandling and the field near Abe's bowtie show a lot of parallel scratches. For being considered to be uncirculated this one little coin has had a terribly rough time. I can't blame Abe for wanting some of his skin to peel off.
Here: Red line is the large lamination, a strip running across the planchet. It peters in and out, as they do. A lamination doesn't have to be continuous or complete. A second line of lamination below the bottom red line is visible in the larger image, as are the multiple places where it continues to the rim. Blue line is a second, shallower lamination inside the first. Hardly unexpectable; that's what laminations do. Yellow line indicates the peel - where it came from, and where it is.
Thanks for your input. The price the seller has on it is a little over 120.00 I still like it, but if there are better examples out there, I'll most likely wait.
It's not $120 worth of nice. Nothing aside the nature of some of the marks argues against Mint State, but those marks hold the ceiling to probably 62 at best, making the coin (Brown, not Red) worth far less than that. The lamination is fascinating but not "additional money" fascinating. 1916 is a good year for typeset material, though. You should be able to find some hammered coins if you're patient, and Gem Browns can be surprisingly cheap. Everybody wants Reds.