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This is Numismatics 101. Dates are(were) punched into the die. Occasionally the need to use a previous-year die which originally went unused requires the new date to be repunched into it, and if they didn't properly obliterate the previous date digit, you get something tres cool like the 1918/7-D Buff.
Correct for early coins but not for the 18/7. After about 1907 a different method created the overdates. After 1907 the dates were in the master hubs. These hubs were impressed in to the die blanks to create dies. It would take two or more impressions of the hub into the blank to create the die. Between impressions the die would be heated and softened. In the case of the 18/7 the die was first impressed with a 1917 dated hub, but when it came back from being softened it was accidentally impressed with a 1918 dated hub.
So there was more than one way to create an overdate.