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Thanks Kathy. My guess would be poor handling with the movement outside the case. It doesn't take much to bend one of the teeny sub dial second hands so that it will catch the lower (closer to face ) hour hand when they pass one over the other going in opposite directions.

 I always cringe when I see auction photos of a watch with movement out of the case and lying face down on a piece of cloth like a towel with looped thread surfaces.