What they did is "rolled" the 1/2" or so edge up. The did this basically from the 10 to 2 position. My friends AAR is the exact same way and are NOS fenders.

At the factory, they used a hand held jig/gage that set in the wheel opening molding edge. There was an open part of the jig which was the marked area that they used a mallet/hammer to roll the edge over. Thus, allowing tire clearance.

Also known as the Hemi Fender.

Please don't use all capitals, it means your yelling.