In my coin roll hunting, I found this 1994 Lincoln Cent that was very odd. The obverse seems normal except there's no collar. But the reverse is very interesting... It's smooth like glass, and everything is flat. I thought it might have been a penny that someone put on a railroad track, but I'm not sure.
A cent that was left on a rail would become thinner and larger -- like rolling out dough. So I don't think that's what happened to your coin. I think yours got stuck in a machine and got worn down.
Sander, maybe? That would work to remove the obverse rims. Damage on the reverse is consistent with that too -- all the high points are sanded down to the underlying zinc while the copper plate remains on the low points.
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