Yes, some states have confusing branding that is misinterpreted in other states. In Indiana, "Special Construction" is called "reconstructed" because they don't have a category for special construction. This is OK within the state, but if the car leaves the state and goes to a state where "reconstructed" means the same as "salvage", then it can get a salvage branding.
Those of you who follow me on Facebook know that I have recently testified in front of the Indiana Senate committee regarding exactly this issue, as well as a few others related to titling and registration of replica vehicles.
All of that said, your car also may have been in a wreck (or been stolen) and written off by the insurance company and properly given a branded salvage title.
Can you provide some amor info on your car and maybe the forum can help you get to the bottom of it?