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Notice the defining line on the blade of pitting. When you close the blade you will see the line is where the scales cover the blade. Clear indicator of Cell Rot

Clear and translucent scales seem...

Yup, cell rot. Scales have to go. There is pitting on the bevel. It may be saveable depending on how deep the pitting goes.

The sooner you get the scales off the better, it will continue to eat...