Strange coin, I do not know much on errors, but it looks like post mint damage , like someone carefully hammered the rim of the coin causing that effect.
Partial collar strike. The collar was not fully in place and when the coin was struck the obv (hammer die side) was above the top edge of the collar and the metal spread out to a greater diameter. Common slang name for this is a "Railroad rim" because the edge on view of the coin looks like the wheel of a railroad car. Sorry, didn't see eddio's comment. I agree with him.
There is a similar coin in this thread: https://www.cointalk.com/threads/what-penny-error-is-this-value.256148/