For some reason, this stamp was punched. Not a whole lot of mystery there until you look at the punched area that is still intact. It is faded. The lines of the mouth, hair and face all meet up perfectly. The ms cancel is off. If it was a repair, nothing is holding it in place. Strange!
Yep, definitely repair, albeit amateur. Not really worth it on a stamp of this value. You see this sort of repair a lot on the higher-value $1 stamps ($1 mortgage perforated, $1 Passage Ticket both perf and imperf), and all the time on the 2nd issue 50-cent inverted center (R115a), although those tend to be triangular punches from custom house cancels being filled.