Yeah, I'd never heard of it before, either, so when I bought the guitar it didn't occur to me that the dings and scratches could be insect damage. But after researching it a bit, there are many different types of wood-eating insects, and so why not infest wooden instruments? And they do- it's not at all unheard of. That said, I have yet to find any recommendations on how to treat it. A luthier friend is going to give me a small piece of wood with French polish on it so I can place it in a ziploc with mothballs and see if it damages the finish. If not, I may try mothballs in the soundhole. Ugh!!
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