http://www.error-ref.com/capped-die-doubling-raised/ I don't think its damaged,possibly a late stage capped die.
I was imagining a planchet getting caught somewhere in the tooling and eventually breaking free and getting back into the mix. Kind of like the washer cents I make from time-to-time when doing laundry. Many times, only one side of the coin is worn by the spinning drum. The side of the coin facing the fixed part of the basin remains mainly unchanged. I would think that the coining process would move enough material around to fill in the worn area, but maybe not...leading to the outer devices being malformed and running towards the rim. Fred may have seen this over the years and have a plausible explanation for us.
That Sucks, it does look a bit odd to happen at the mint. The center details are just a little too sharp.
Hmmm...I would set that one aside in a flip. The elongated effect of the outer devices stretching to the rim; looks like irregular material flow more than mechanical damage to me.