Looks like it has been rubbing on the key barrel. That might be a rubber issue. I would sand it back and put some paint on it. Maybe get a new rubber sleeve for the spikey thing to go into
I've owned several Ducatis and a little Cagiva(owned by Ducati at that time) and all suffered internal fuel tank corrison . They look perfect from outside but rust from inside out - totally blocking the internal fuel filter on the Ducatis. Maybe its from washing the bike, poor tank seals, ethanol in fuel or whatever- but the Ducati tank seem very susceptible to rust from inside. Remove tank - drain all fuel, remove rust (loads of options from loose nuts and bolts to electrolysis) , if its really bad use a sealant. Best of luck
Thanks for the replies. I'll paint and protect that nook a little better moving forward. As far as rust goes, inside of the tank is very clean.