My grandpa had a bunch of 60's pennies that I asked to look through, nothing real special but seemed to have odd lookers throughout the jar. This was one...
I agree PMD, it just seems odd its all on one side, the parts not scraped are untouched, and it ended up smaller around. Its dime size now. I guess there is no standard for damage ....
someone has ground this one down to dime size so it could be used as a dime in vending machines. at one time a dime was worth quite a bit.
This is a great write up on this issue: http://hermes.csd.net/~coneca/content/OhNo0036-CutDownDimeSizeCents.htm