2002 Indiana State Quarter ERROR??????? Please Help

I found this 2002 P Indiana state quarter and it obviously has something is wrong with it. I was wondering if anyone has seen this before and if so what happened to it. Is it a mint error or post mint problem? If it is post mint any ideas on how this happened?

 

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It went through the dryer without going through the wash first.
Spender.

 

Looks like someone started tapping the rim with the inside of a spoon to make the beginnings of a ring (drill out the hole when reach desired band thickness). People used to do this with pre 1965 quarters.

 

PMD in my opinion. (Post Mint Damage) - Damage taken after leaving the mint.