I 100% see the lowecase y between the T and Y in Liberty in your picture, you aren't seeing things, or making a connection to a lowercase y out of a smudge.
However it is a smudge lowercase y and not a minting error. This happened after the mint at some point. Likely it's some ink transfer. I have a nickel like this with a little s on it and same type of thing. I can't say exactly how it happens but with my tiny 's nickel there was a really small piece of paper with an 's on it I peeled off and an after image of the letter remained so likely it happened in this type of way.
I'd agree on it being DDD on the reverse.
However it is a smudge lowercase y and not a minting error. This happened after the mint at some point. Likely it's some ink transfer. I have a nickel like this with a little s on it and same type of thing. I can't say exactly how it happens but with my tiny 's nickel there was a really small piece of paper with an 's on it I peeled off and an after image of the letter remained so likely it happened in this type of way.
I'd agree on it being DDD on the reverse.




























