I agree that this is not, and never was a "proof".
I can't explain the state of the reverse-rim - looks like an uneven strike, but perhaps other explanations are possible.
The sparkling "patina", makes me wonder whether it has been "whizzed" as our American friends would say.
Quote: "A proof coin which has been handled, dropped or marked is technically still a proof strike - just not in Proof condition.
... Its still a proof struck coin in now circulated condition."
I think that the usual term for this situation is to refer to the coin as an "impaired proof", rather than circulated.
The problem with selling misdescribed coins - inadvertantly or deliberately - is that the novice buyer might not find out the error until years later, when she/he attempts to sell the item. So, a full refund policy may not be of much use.
