What is up with this?

It has a tapered edge. It is not hammered or spooned.

 

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obviously spooned and then put on a metal lathe

 

Actually.. Its in a coin bezel. It's a metal ring surrounding the cent.

 

I agree with coin bezel. Can you weigh your coin? A bezel will add weight to it.

 

2.5g

 

I hate to dispute this, but could someone kindly point me to the evidence of this being a bezel?

 

It's not overweight so a bezel is out. The edge is very smooth for a spooned coin.
It looks like it was rolled under pressure. Like it went through something like an upset mill after it was struck. Can you get a Diameter measurement?

 

About 1.75mm

 

That seems like a thickness measurement. The Diameter should be around 19mm.

 

The I diameter is 18.95