Hmm, as I understand it, in a clipped planchet another coin should fit into the missing segment, right?
Clipped is different than incomplete. Incomplete planchet would be more fitting with this coin. I think that it is damaged just by the overall condition of the coin.
I think it has to do with the planchet strips not advancing far enough so the next cut hits part of the previous cut!
But I think @CygnusCC is right, it has to align with the circumference of the cutting mechanism, which is the circumference of the coin. From your reverse photos, yours looks mangled around that cut. I think all that's just PMD. Hey, sorry about that.
DEFDAM - Definitely Damaged.. Clipped errors aren't actually clipped. What actually occurs is that the blank planchet was cut to close to the previous planchet so it's incomplete. Your copper plated zinc planchet lost its plating and it is rotting away.
Just goes to show you how fuzzy I was feeling this morning. I didn't even notice it was a Zlincoln. That explains everything.
Looks like damage to me. A clip is an incomplete planchet but the curve is too great on this. It should look more like this. a cent should fit perfectly into the missing clip.
