May we see the back please?
First picture in his original post.
Looks hollow
http://www.treasurenet.com/forums/t...button-early-silver-eagle-piece-military.html
This isn't an exact match but I think confirms the hat badge theory:
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I saw two examples, including this one, where the badge from a Jeff Davis Hardee hat had been cut down or carved by a soldier. That would also explain the necessity of adding the new wires to affix the badge to a hat.