Thanks for the advice fellas.
Originally posted by Ryan L.
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On a second thought, the spot might be etching because of the rounded shape.
here are the pictures:
Paint Transfer with ScratchX 2.0 and High Rubbing Pressure:








As you can see, the the spot I am suspecting to be clear coat being sanded through is round. When I run my finger across the affected spot with my eyes closed, I couldn't fee any ridges or unevenness on the paint.
This may be edtching, and I hope it is.
After doing some research on etching in this thread How To Remove Water Spots off Automotive Paints
I find that the spot I am having an issue with is similar to this type of etching:


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