Travistee,
That's a good pic!
The truth is... no one really knows for sure if it's acceptable or not. I'd say, though, that it's not.
You've no longer got a perfectly circular opening for fluid movement in the cavity and against the center post... erratic expansion, or NO expansion, could occur, effectively transforming your expensive Hydra-Shok ammo into hardball.
Another question to be considered is A: If the impact that created the smiley set the bullet back in the case causing potential dangerous pressures, and B: Whether the round is going to deliver maximum accuracy.
Obviously B is of the least importance with a pistol like this. We SUSPECT that there's been one instance where the bullet setback has been severe enough to cause a catastrophic failure, but don't know for certain.
So... functionally, I'd say you're fine.
But, the smiley is there... with whatever consequences that may entail. Since it's of an unknown quantity, it could be important... or it could be nothing at all!
When the weather clears up I'm going to test expansion of some rounds with this type of deformation and see what happens. In the meantime, I'd not worry about it.
If it really bugs you, you can always do the rampectomy and get rid of the smileys for good.
Flyer