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Yeah, that cannelure is rolled into the case to help keep the bullet in place. My belief is it is to give a slight "ledge" inside the case for the bullet to sit on (because, you know, there is a gap - an air space - between the bullet and the powder). Each time that case gets fired the cannelure gets a little more ironed out, and after five or six loadings you will hardly see it anymore.
 
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