Seeing the damaged L is right next to the area you are wondering about I'd say it's just a continuation of the PMD
Imo, there is not enough damage to produce that much material on the coin. There is no damage on the reeding it just looks like the reeds ore blanketed.
Unfortunately the picture of the edge reeds is blurry and can't be enlarged. Any chance of getting a better pic? Could possibly be a collar die chip.