Damaged of course Is it dished at all? Can't really see much on my cell with such a small picture even zoomed. But looks like several different types of damage including probably in a dryer or rotating device with the worn out smooth edges.
Oh yeah, definitely damaged now that I can see it better on the computer. 1 - if you look closely at the middle, it looks like someone was hammering the head of a screw to it. You can see a circular pattern with a regular standard screwdriver slot. Of course, this could have been the center of a grinder too. as 2 - you can see scraps at various angles emanating from the center. with coins, don't throwaway the obvious as most coins are damaged and not "errors". Why? you would have to ask the person (or machine that it fell in) why.
Only the person who deliberately altered it after it left the US Mint would know how they did it. Not a Mint Error of any kind
@Daniel Dutton welcome to CT. Some friendly advise, please try to take photos on a neutral background, white, gray, or black, and crop the photo to show just the coin, obverse and reverse. Post FULL IMAGE not thumbnail, make sure the photos are in clear focus and correctly orientated, and close ups of any areas you have questions about and you'll get more comments and better answers.
Lol. Thanks for all the insight. All the statements were along the lines of what I was thinking. Thanks again.