Looks like somebody confused this coin with an 8 Reales and was trying to make change!
I might be wrong since I know next to nothing about errors...BUT
Seriously, looks like some machine-made damage, post mint. Or somone stuck it in a vice with 1/2" socket or something....Or PMD as the gentlman said....o|
One interesting thing to look for are die cracks...they are raised ridges of metal on a coin...and some folks find these highly collectible and desirable...




















