Yes.. It's called a Non Mint Error Here is a good website that will show you the different types of Mint Errors - http://www.error-ref.com
I bet if you tried to recreate it, this would answer many of your questions and be a learning experience to boot.
To me it looks like someone was attempting to make a "Hobo Nickel" & maybe didn't like that result & put it into circulation. Whatever it is, someone processed it with some kind of tool & now it is just damaged. It is not an error - it is just considered damaged. There is absolutely no way it came from the Mint that way.
When the cutter starts squeezing into the rim it displaces metal. That metal has to go somewhere and one of the places it goes is outward creating the "puffed out ridge" at the cut.
Hypothetically, if it was bring your kid to work day and one of the mint workers brought his brat who had side cutters, would it be POST mint damage? It happened at the mint.