Except the cap is the one that is not fully in the collar. The coin being struck through the cap (The OP coin) IS typically fully seated in the collar. In this case both the cap and the OP coin were not in the collar (Cap completley out of the collar and the OP coin partially out of the collar.
FWIW, I sold a 1969 cent with the same error combination, in a little better condition a while back, for less than $10! Goes to show how risky ebay can be sometimes. Someone got a good deal!
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