Welcome to Coin Talk. There is raised metal around the area in question which denotes Post Mint Damage. Also I would say your coin is not an MS/UNC coin due to the amount of wear on the eagles breast feathers, About Uncirculated at best.
Can we see the obverse? Not ms++ nor uncirculated there a lot of “chatter” in the fields. That coin looks to be cleaned.... welcome to CT!
I'd need to see the other side. But I am not at uncirculated on this. Most likely a damaged XF coin that was cleaned to make it appear uncirc. Agree with Mike, since his name is awesome.
It's damaged. You can see where the metal had been moved from and where it currently is. Welcome to CT.
Welcome to Coin Talk. As others have said, the coin is damaged and doesn't appear to be MS. Also, the 1880-O Morgan is not a rare date.