I didn't notice until just now but the coin appears to have a slight lamination error at the top of the reverse too, but it appears very minor and I know lamination errors are very common for Buffalo nickels, so thats probably irrelevant for this coin.
Looks like it was in a bezel at one time. I would want to look carefully at the edge and close to the rims for a seam and I would also want to weigh it since this is a better date. A target for counterfeiters to be sure.
It definitely isn't coin Wrapping Machine Damage. The depression around the rim is just in the field areas but doesn't seem to have disturbed the F or S in FIVE CENTS, or the bison's head. I would expect damage/scrpes in those areas.
It doesn't really look like encasement damage either. Typically an encasement where the edge of the die contacts the rim it mashes it down somewhat. Here the depression appears to be inside the rim.