Is the arc the same radius as a half cent? My guess is that another coin may have been squished into it. Hard to tell though.
It seems that the denticles are smashed on both sides, exactly where the impression is. This, to me, would indicate a squeeze job of sorts
It made me look twice, but I concluded it was damaged, because it affected the wreath, and did not appear struck thru or anything else I could come up with.