Phantom Of The Opera! Error?

Just PMD. You can see how the reverse bulges outward opposite that area of Victoria's face.

Yep, she just lived a hard life.

Occam's Razor says that there's really only one "bad thing" that is likely to have happened to the coin. We know it's been bashed about quite badly; evoking the "roughly handled" explanation for some of the damage and some other "mint oriented" explanation for the rest of the damage is overly complicated, when the simplest (and therefore most probable) explanation is "it's all damage from being bashed about".

Further, there isn't really a way to get that kind of damage happening to a coin during the production process - a strike through, perhaps, but a strike through does not cause corresponding damage to the other side, which is clearly evident by the raised patches on the reverse of your coin.