Looks like somebody was bored in their garage. What we have here is a combination vise job with a hole drilled into it.
The OP asks "Why would anybody do this?"
Because people are weird.
Perhaps somebody got fooled by the "doubling", thinking they had a valuable error, then when they were told it was just a vise job, they got mad and drilled a hole in it.
Perhaps somebody wanted to see what would happen if you took a whole stack of coins and tried to drill a hole straight through all of them, and the "doubling" was caused by pressure from the drill.
We don't know, we weren't in the garage watching them vandalize coins. But a vandalized coin, this now is. Not a mint error, guaranteed. Technically, a coin counting machine will no longer recognize it so it's now "mutilated" and isn't even legally worth one cent any more, it's just scrap metal now.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis