I don't know anything about coins and don't know how this damage could happen in circulation. But like I said, I'm just curious.
Jammed in a vending machine, somebody got bored and hammered it, caught in some kind of machinery. the list could go on and on. But there isn't a single way it could happen during the minting process.
Just remember, there is only one way to mint coins properly but they are a million ways to damage a coin.
You were correct in asking if it was PMD, as that's what it is. Just an abused dime from after it left the mint. If no one will take it as a dime, take it to a bank and they should exchange it for you.
