Hi, I have been mulling over this coin over on the Canadian error forum. It's been suggested this is a "vise job", where a washer? was forced into the coin. If that's true, then I would expect the following:
The coin would bent due to unequal force exerted by the washer on the coin
The portrait opposite the washer would be damaged when forced against the working surface
The coin's circumference would be distorted where the "washer" is nearest the rim.
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