I agree with the loop theory. It doesn't look like there is enough metal missing from the low spots to make up for how much is on the high spots. Also, it is right at the top of the bust.. right where you would hang it from to best view Lincoln.
I would assume so since they are used to make jewelry.
The scrapes across Lincoln's face make me think it was placed into a spot and then a fuse shoved into the same place. The rim damage is from arcing. (Maybe,I'm just guessing.)
I have never seen a plumber melt the copper pipe he's soldering nor have I ever seen melted electrical wires due to solder, but I do remember the fuse box fixes, and that could definitely melt this coin and any other metal put in there. Just a guess.
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