It's remarkably intuitive once you've thought about it (but not before). The digits/stars on the periphery of the die are negatives on the die, of course. Every single strike, they fill with metal which is only flowing like liquid because of the titanic pressures involved. At that spot on the die, the only metal to fill all of those outside devices is coming from the direction of the center of the planchet outward. Slamming against the outer edges of the negative in the die, time after time, at tremendous speed and pressure. Die steel wasn't as consistently good in those days as later, and in a lot of cases (Busties are particularly known for it) the repeated strikes eventually wore a groove through the die to the edge. Every issue (more or less) can manifest this problem. Lincoln Cents are notorious, as well, because they generally pushed dies so hard to strike them. Ditto 1921 Morgans, known for letters drawing to the edge. All from the action of a metal significantly softer than the steel it's wearing away.
I think it is probably genuine, but the deep dig on the chest area, and the apparently stripped off surfaces, do nothing for me.