It's a die crack that starts at the middle of the first 1 in the date and runs through all of the stars ending in the field to the right of the last 1 in the date. N-12 comes in several different die stages and they are popular with collectors. The OP coin is an early to mid stage coin, the lower graded coin that amida posted is a mid stage piece. The end of the crack between the 1 and star 13 has become heavy and is forming a
Retained Cud at the left end. A second crack has also developed from the outer point on star 13 to the rim. In the next stage a full
Cud develops to the left of star 13 that only encompasses one point of star 13. (Only two pieces are known with the one point
Cud.) Dan Holmes had a nice progression of die states in his collection, unfortunately the link is down right now. I'll try and post it later.
This link is to the early die state lot 359 in the Holmes sale.
http://images.goldbergauctions.com/...e=59&lot=359The next 6 lots show later and later stages to the terminal state in lot 366. The OP coin compares very favorably to lot 360 which sold for $437 in the sale.