Hmm.... that hole doesn't look like a defect.. But, residual hole punch material, may have affected the mounting of that "switch.." OR pieces of said residual could be causing a minor short.
Easy fix.. Desolder, open switch.. check.. all good, resolder.. OR buy replacement switch for $1...
is it still under warranty?
if not,, replace switch is the only sure fix.. ASSUMING, its' not a "cracked pcb." causing the chatter.. OR it could be that there's too much solder on the contacts, and a tiny shard is shorting the switch... hmmmm....
)
)