Damaged. Coins take a lot of abuse in their lives. Some as in the regular course of doing business, and other times intentional.
I mean to be honest I would think that somebody trying to alter a 44 into a 1914 D would go for a Denver minted coin not a San Francisco.. I thought at first this might be a lamination error because of the reverse..?
I don't think there is any lamination error on the reverse. I would have to have it in hand. It's so beat up that I would almost be certain that it's just damage. It almost looks like someone took a bite out of it.