I totally agree with acid dipped corrosion. Some good information - http://www.error-ref.com/acid-shrunk-coins/
fyi, put your coins on a flat white or black surface. The fabric has too much texture and the camera was focusing on the fabric and not the coin. And take the coin out of the plastic thing, it's lived it's life this far not being in one. I'd gather from the image you were laying down in bed and put the coin on your shirt.
Actually.. A Damaged Penny Not a mint error of any kind as explained in the link I provided. http://www.error-ref.com/acid-shrunk-coins/
Welcome to CT @Robert1395. Your question was answered by several of our expert members, so nothing to add, other than this is a great place for you to get answers to your questions.
I've seen this before. Somebody is grinding, filing, or otherwise wearing down a cent to make it work as a dime in a coin-op machine. Foolishness.... A lot of work for nine cents! I doubt if it even works in a modern machine.
This looks like a typical coin that I sometimes find on the beach with my metal detector, eroded down from the surf action over many years. It could also be acid dipped as other readers have stated as that would have the same effect.
In respect for a dear friend who retrieved several "skinny pennies" (or "cents" for you insufferable numismatic pedants) from the sewers of Memphis, TN. This is not the result of acid or any other insidious/pointless human tampering - simply the steady, even erosion caused by countless sewer-bound Dixie downpours. Examples upon demand.