It resembles a parking lot coin except that some of the markings, such as the scratches on Washington's bust, seem intentional. This coin was scraped against concrete or heavy grit sandpaper on both sides. That action will move/displace metal and can cause the "fold" you are seeing on the edges.
The reason that some of the legend (letters) are not affected is that they are lower elements on the coin and the rim and central designs took the brunt of the damage because of being in higher relief. The area(s) of pressure applied when scraping the coin can affect what parts of the design receive the most damage, as well.
I hope that explains it a bit better.
"Baseball gets you out in the fresh air and keeps you from talking about your neighbors." -Lib Dooley