The methods of damage is pretty much unlimited beyond comprehension. Just learn how to identify what is damage, then you can theorize how it occurred. I can theorize how this occurred but probably would be 99.99% incorrect but it would make an interesting irrelevant story as in the end, the dime is heavily damaged and it's still only worth 10 cents.
@mona willhite I think the comment above needs some clarification. If you learn about the minting process and how coins are made, then you will be more able to spot damage that occurs after the coins leave the Mint. Chris