I know! We had a local dealer who spent junk like this all over the city. Believe it or not, probably about 20% of the stuff came back to his shop with a potential future customer in tow!
The coin is not a fake. Someone made it. What would they be trying to fake? Once they got the die straightened out they could go on to make fake double strikes. How are you gong to tell if the coin was double struck at the mint? Unless you find it in a bag of mint coins. How will you tell a true brockage from one put in a vice? Its not this one instance that makes me not want to buy them. Its the multitude of posts on here where people find coins that someone has altered somehow. My other reasoning is that most mint errors are some type of mechanical failure. It doesn't really impress me. I am more impressed with perfect coins. Now those are rarities.
Technically, YOU ARE CORRECT. The coin is NOT a FAKE. It is a genuine coin that has been fraudulently altered to appear to be some sort of Mint Error. Thankfully there are professionals and collectors far above your expertise who can authenticate error coins. You also made a very valid point. Collect what you wish and stay away from the things you don't know about.
There are to many impossibilities with this coin for it to have happened at the mint. I have 2 questions to the OP. 1st, In the date "1969" is the "96" higher (More Proud) on the coin than the last "9"? 2nd, Did you closely inspect the edge of the coin and do you have a picture of the edge. I guess that was 3 questions, however I have an idea of how that may have happened.
As you can see in the pictures the date is all the same level in the field. The field however has the memorial corner sticking up out of it. That gives the date a split level background. I did not inspect the edge.
I have tomfiggy's cent. As I expected, all of the extraneous design elements are incuse. This is an obvious squeeze job.