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1882-0 Morgan, what is going on with the O?

Any thoughts on what happened with this O? Is this a form of damage or a vam? It is in a PCGS holder so it shouldnt be damage....


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<< <i>That's some pretty severe damage on a dmpl coin? Not sure how that strange of a distortion to the O could result without more damage elsewhere. >>
It's a tiny bagmark. It should not be called damage.