Damaged Scott #102c Persian Rug.

I know stamps with minor faults can be had at great discounts but what about this one. It is selling at almost $200 dollars. I just do not get it.

Looks like they framed their rug.

This should not be called a "Persian Rug" anyway. There were some collectors years ago who called this stamp the "Baby Rug", but that name never really took. The two "Persian Rugs are Scott R132, which is the "Small Rug", and R133 which is the "Large Rug".
This stamp has had perfs added on three sides, and is worth perhaps $75. It was probably trimmed originally to fit on a document, not an uncommon thing to do at the time.