1862 Indian Head Cent - What's this ?

What causes this feature on the reverse rim? Also curious for grade opinions on this one.. I was thinking 45 but wondered if there's enough meat for low AU. Thanks in advance.

 

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The grade looks like an XF-45 to me. As far as what's going on on the reverse, it looks like a Mis-Aligned Die with finning that rolled over.

 

I agree about it being XF-45.

 

Took it out of the Dansco and snapped a couple more photos. I'm with you guys at XF- it's pretty darn close to AU50 examples on the bay but seems to show just a bit too much evidence of circulation. Just right for my album in any case.

 

Nice example.

 

Rim cuds.

 

That was my first thought actually, but I had never seen or heard of such a thing.

 

Nice cent.