
Coming in a little closer it still looks very much like a crack

So what's the big deal? It sanded off on the 400-grit first sanding step. It was either a surface crack or a scratch. I'm leaning towards scratch, since it was only 0.001" or so deep.
The moral of the story: Things may not always be what they appear to be.
I sent the above photos to the seller, and he refunded my payment and graciously told me to keep the reel. When I found the "crack" was gone I refunded the refunded payment and we're back to square one!