That is damage from a hand punch. Notice how the punch in the obverse obliterated the design on the reverse.
Both sides are damaged. If you look at the obverse carefully you can see signs of metal that have been dislodged.
Thanks for your responses. I kinda thought it was, just making sure. The hand punch makes perfect sense to me now.
That's what I love about this forum. More knowledgeable information than one could fit into a very thick book.