1861 Confederate States Of America One Cent - What Exactly Is This?

It was actually 1961 when the Bashlow restrikes were made. John Haseltine made restrikes in the 1870's, but his coins did not have the defacement on the reverse. The dies were "cancelled" after Haseltine made his coins.

In 1961 Robert Bashlow bought the obverse and reverse dies for the Confederate Cent and had the Philadelphia firm of August Frank make copy dies from the originals so 2nd restrikes of the Confederate Cent could be made and sold to the public. These were mostly made on double thick planchets and exhibit raised damage that was created when the original dies were defaced. Obverse die exhibits die rust.

https://coinweek.com/featured-news/robert-bashlow/

Restrike from canceled dies but looks like environmental damage from being in the ground, either by intention or accident.