Damaged coin in straight-grade PCGS slab?

desslok

What do you think of this? The central hole on the obverse side (is it obverse? I'm referring to the side with the date and country name) seems to have been machined or otherwise damaged. I can't believe it came out of the mint looking like that. It's in a straight-grade MS-63 holder. What do you think?

Click on the picture for the enlarged TrueView. It's not as visible in the smaller pic:

desslok

Closeup of the problem area:

7Jaguars

Does indeed appear to be PMD. And to think they rejected my 1871 Brit penny for microscopic hairline, I don't get this type of thing.

asheland

Interesting.