It looks to me like the tree was mechanically damaged, either at the nursery or during transport. It happened a few years ago, as indicated by the reaction wood growing on the margin of the wound. My guess, is that it was done in the spring, someting hit the bark and damaged the cambium. The bark hung on, but dried out and finally fell off.
It doesnt look like sun scald to me.
Having said all, i dont have local knowledge, so there may be something in your area going on, that i wouldnt know about. For example, some recommended replanting with a river birch, but i would never recommend a birch here due to bronze birch borer.