Ayala reportedly said the gunshot wound was under the button (2/284).
I still don't understand why Ayala would have hallucinated this, when he had no way of knowing there was such a button in one of Martin's pockets.
I think its a fair assumption if he said the gunshot was "under" the button, that the button was covering it. Maybe its too much to assume an officer (or officer of the court writing up the report) wouldn't use the word "under" it the bullet hole was actually below. I understand the under and below could have the same meaning when describing the level of an object in relation to another, but these individuals are trained to be precise when writing up reports or describing what they see and "under" would be the precise word to use if an object was covering another, not vertically above.
As for Ayala, I wouldn't assume he hallucinated anything, but maybe misremembered, depending on how much time had elapsed before his report was taken. Is it possible he saw a kid who was shot and bleeding out and just started trying to revive him as quick as possible without really thinking about what he was seeing, then later when gathering evidence, saw the button place on TM's chest and is reporting that? I am not saying I think thats likely, but I think its possible.
Now, if the button were attached to the sweatshirt and that close to where the entry hole was (over top of, or just above), I can't fathom a reason why the button wouldn't have been tested for blood and gunshot residue. We haven't seen a report on it, so is the report being held back (seems impossible given sunshine laws and other reports that have been released), or wasn't it tested? I will make the assumption it wasn't tested. Is it more reasonable to think an officer would misremember seeing something while in a hurry to try and revive a dying person, or that an entire police force would not think to test an object that was right where the bullet hole was?