if you are talking about how "Liberty" is partially missing letters, it could be worn in circulation or a grease filed die. We would need better closeups of Liberty to make a judgement.
Worn die or grease filled, you will see allot of these on modern coinage. The dies are not plugged in any way but you could say that the depressions on the striking die get filled with so much grease that it blocks part of the impression to be transferred onto the planchet. So you are not completely wrong in your evaluation of what happened to the coin.
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