No idea what kind of error this is, I just know it is not wear since the rim is still nice, and the design in the center is not nearly as worn.
It definitely could not have left the mint looking like that. No part of the minting or die making process could cause that appearance. We can speculate as to what caused it, but the bottom line is that it's just damage.
Not necessarily, a dryer coin has been stuck in a dryer for a long period of time. It wears down the rim and gives the coin a rounded smooth edge. Also, the continual tumbling against the steel drum beats the snot out of a coin and causes the rims to roll and fold inwards. I'm not sure where in the dryer it hides but they stay for years sometimes.
I will be posting better images of it when I get home later, because honestly I don't think it is a dryer coin based on other examples of such coins almost always having little to no rim. But I honestly think it may have been intentionally defaced with a press machine.
As PMD, it can be unlimited way to damage the coin. Bottom line it did not left the mint like that. IMO.
"Dryer coin" is sort of a catch all phrase in my opinion. Could have happened in any number of ways, but damaged it is.
The first thing that people who don't agree with an explanation do is to "take more photos". Your initial photos are fine. More photos won't change anything. When a coin is trapped between the drum and the inner liner of a dryer, the combination of heat and tumbling over, not just one use, but dozens of uses, your coin is exactly what it will look like. The heat causes the rim to curl in over the fields of the coin, and the devices turn to "mush". There are dozens of threads on "dryer coins" right here on CT if you would take the time to read them. Chris
Thanks everone for the input, is much appreciated. I guess I wont post more photos since there seems to be a consensus.