Can someone please help me identify this error on this penny if it is even an error at all? Thank you
You will notice that in the crushed area there are still traces of the design/lettering/rim etc. These features had to be created before whatever caused the crushing, so it has to be PMD. If a chunk of the collar had broken off and fallen away the design would still be normal, although possibly weak, and there would be a blank bulge outward from the rim.