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HK-248 ? Silver Plate ?

Is that maybe a gouge instead of flaking surface?

I thought that this auction was strange too. I see what you mean about the bid history of the top bidders. I checked out the history of the seller and the type of items that he sells and now I think that the top bidders are history collectors and aren't numismatists. The plating or added finish would not seem unusual to them. That is just my thoughts from a different point of view.