'85-D's have funny rims like that but that specimen looks like it might have had a little help with a file. Do you have a reverse picture?
Caught in a coin counting machine or a dryer would be my guesses. I would, however, yield to Cladking and his superior knowledge/experience.
It looks like it was mechanically flattened. Hard to say if it was on purpose or by some type of machinery it went through. BTW, wear is not PMD. Wear is wear, damage is damage.