That was my initial impression also, but it is actually ink printed on the bill. I work at a bank and a client brought it in because he thought it was counterfeit.
Just uploaded the pic of the back. If it is damage the back should also be damaged? I don't know what to think, it's a real head scratcher. I was 100% convinced it was damage but the more I look at it I just don't know. His mouth seems to be distorted. The bill is definitely circulated but no creases or crinkles by the area in question.
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