This is the very will know S-261. If your talking about what happen to it's a die crack. This die crack shows up when the die is in die state 2. This also was the same odverse die use in the 1860 restrike of the 1804. Did this help?
Yes, thanks. doesn't look to me like the typical die crack. Almost like the hair lines
above and below the crack are at a different elevation on the coin.
This photo of my 1804 restrike that Charles referred to shows this same S-261 die crack at its post-terminal point. This is when the discarded large cent dies were used years later to make this infamous 1804 restrike. The raised scattered dots were formed by the rusty dies.
Here is my S.261 obverse. Great variety in late state!Attachment 470