The only damage it really has is what links like abrading on Lincoln's face, and I think his jacket. And the rim on one side of the coin, on both obverse and reverse is like it's stepped in.
It looks like it was an encased cent at one time. Pressing it into the holder put caused the rim damage and probably caused the bowl shape. Not a mint error
Oldhoopster has part of the answer, yes it was part of an encased cent. But pressing it into the holder didn't cause the bowl shape. That came either from forcing it OUT of the holder or just possibly from the striking of the encasement itself. The dies used to strike encasements are annular, that is they have a hole in the center so as to not flatten the coin during striking. Striking the encasement forces the metal inward toward the center and helps to lock the two pieces together. Too much inward force could cause deformation of the coin. (the cupping effect)