Wheel Hub question

During a rotation, was informed by Big-O that right front wheel had a loose outer race.
I have some new hubs in transit (thanks 72Dart). While waiting, I have removed the hub. I confirmed the race was loose. Oh Boy was it loose. I would never had installed it like that since I know better. Just wondering what could cause this? Also, there is a ridge in the outer part where the bearing goes. I can't recall if the ridge was there upon install. Can someone look at the pics and tell me if the ridges are normal.
thanks
Danny
On edit: 1970 Valiant, 318, Scarebird disk upgrade, formerly 10" drums