Never seen that before, but suppose if its not causing any health problems, it will be ok.
Our Shetland sheep, Bertie, had an accident with the shearer the year before we got him. No one mentioned there was a castrated tup in with all the ewes, and he set too shearing Bertie .......lets just say poor Bertie had a bit chunk of his willie sheared off. He now pees through a hole half way up, but he does not seem to mind. I bet he was in agony after his accident though..