i had a similar thing with my DFLE and my swamprat crash axe which is made of the same steel.someone on another forum had a similar problem also a while back.

their was a bad batch of steel that had air bubbles in it and if the air bubble was near the edge this was the result.

but send it in to the shop and let them determine if it is an air bubble or not and what the right recourse is.i dont know that it is an air bubble issue.

if you hit something hard like a rock or steel a ding or chip is expected but when its just wood,weather hard or soft their may be an underlying issue.

the good news is scrapyard wont leave you high and dry.i'd quit sharpening it now so dan can get a better look at it and have a better feel for how serious it is.

just from looking at it in a pic none of us can really say what it is.it does look strange though.

e-mail patty and then take it from their.