Yeah, I've looked up a bunch of two piece habakis online, and that's how they all appear to be like. It's true that the lip is banged up, when I disassembled it, the guy who worked on it before had forced the fuchi OVER the lip, so I initially assumed it had been bent and crushed flat to the mune.
But looking inside the habaki i can't really see any ridge having been there.
Of course, like this it can't perform its function as a habaki, so I think I'll have little choice than to replace it then.
Thanks for your insight, George.
EDIT:
Well, I just found out why it looked like it didn't have a ridge there spacing it from the blade, it's because there was like a 1mm thick layer of superglue in it, with the same color as the habaki, so it was hard to tell.
Managed to scrape it away to reveal there's indeed a very small space inbetween there, but also that it's also quite damaged, material rolled over.
At least this puts me at ease a bit, it was bugging me so much that I couldn't figure out how it was supposed to function if it wasn't like how two piece habakis are supposed to be.