Cosmetic mini issue I'm wondering about

A few days ago, I bought a KoAloha pineapple longneck, and I love it to pieces already. Fantastic sound, really good "feel".

However, I noticed that in the second fret, on the side of the fretboard, there is an imperfection. It can be barely felt, and I only noticed it in a specific light. In the very close up photo, it's clearly visible, though:

Here's a high resolution photo (bit blurry, iPad cameras aren't so great).

It doesn't affect playing at all, and I don't plan on returning the instrument because it is magnificent in every other way, but I'm curious about what it is. Is it sloppy workmanship? Wasn't it sanded down properly? (I see there is another "step" by the third fret.) Is it damaged? Or is this "normal"? At first I thought someone with too long nails had clawed into it, but that's not what it looks like.

I really know nothing about wood working, so I figured I'd ask you guys here.

Looks like the binding got raked up against something at some point. You could round that off with a bit of fine sandpaper if it bothers you. Follow up with 0000 steel wool and a touch of lemon oil.

From a woodworking perspective, there is no point when it's done. You could always put another hour in to make it better. So at some point you cry "Enough" and call it finished.

For a business, more time = higher price. So I guess they thought it was close enough to say done.

I stop when it's playable, minor imperfections are my signature look. Custom builders charging many times what you paid would have polished it out.

Good! Now you won't panic over your first boo-boo. Take it from me...the first ding is the absolute worst. I almost cried.

KoAloha uses Koa for fretboards/bindings on their Sopranos and Concerts, which isn't as hard as other woods and therefore more prone to imprints, nicks, and dings. They like to approach things differently, but I guess there's a reason why most other makers use harder woods like Ebony or Rosewood for their fretboards.

I guess that small imperfections like the ones pictured can be found on pretty much all handmade objects, no matter the price range.

That appears to be tear out rather than any dings or nicks. If you look closely the tear out is pretty much at the same angle as the grain. It would be a bit poor on a very expensive instrument, not enough to worry about on a mid or cheap instrument.

I agree with the above posts: the soft Koa, etc. if it does bother the finger, I'd 0000 steel wool it.

You say you love it's sound, so it's a keeper.

If your life is anything like mine, if you exchanged it out for another one, the new one would have no blem, but not sound as lovely as the one in your hand...the one you'd always refer to as "the one that got away".