GRB 980425 is distinctive in that it seems to be associated with SN 1998bw,
has no X-ray afterglow, and has a rounded, structureless, single-peak ligh
t curve and a relatively soft spectrum. The supernova is itself unusual in
that its expansion velocity exceeds c/6. We suggest that many of these feat
ures can be accounted for with the hypothesis that we observe the gamma-ray
burst along a penumbral line of sight that contains mainly photons that ha
ve scattered off ejected baryons. The hypothesis suggests a baryon-poor jet
existing within a baryon-rich outflow. The sharp distinction can be attrib
uted to whether or not the magnetic field lines thread an event horizon. Su
ch a configuration suggests that there will be some nonthermal acceleration
of pickup ex-neutrons within the baryon-poor jet. This scenario might prod
uce observable spallation products and neutrinos.