Not an error, the copper plating has been ground of exposing the zinc core. It is only an error if it happens during the striking of the coin. Anything that happens to a coin after that is considered damage which has no value.
notice that the center of the reverse is still visible, this is because that point of the reverse is a low point due to the fact that the obverse bust takes up more metal to fill in the die allowing for a small 'void' or hollow if you will on the reverse.
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