I cannot answer 100% as to what it is, but I can definitely rule out three things: it's NOT a doubled die, it's NOT die wear, and it's NOT Machine Doubling.
What could it be?
A case of die polishing gone wrong. Die damage of some other fashion.
Thanks for taking a look. I'm glad I wasn't the only one puzzled by it. As I look at it close up it look like the letters N,I and T have shifted or smeared.
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