I have what seems to be an 1863 indian head cent error. After my research, the closest thing I can find to it is a rim cud. But the descriptions don't quite match. It looks like the rim is thinner there as if the rim was getting pushed in and onto the reverse. Any help is greatly appreciated.

Well you have a die crack. As far as what else I can see looks like it was caused by the machines. Or the strike. .

Cool find! It is a die break line, which may have been an early die state of a cud.

Thank you everyone for your help, it was indeed a die break line. I sold it back for $50 at the same coin dealer that I bought it from for $12. With that I bought an VF 1859 Indian Head cent

Taking a closer look always pays off