Just a guess, but looks like something damaged it while it was just coming up and before it unfurled. Most likely a bug was eating on it but could also be it got hit by a hoe or shovel or even stepped on at the wrong time. Look at how all the leaves have a similiar curl to them and the bud or stem end is brown and deformed. Not likely to give proper bloom this year, but if allowed to grow out and die back naturally it will be just fine next year.
Flora

Thank you Flora!
I was worried if it's some kind of virus, and if I should dig it out. Now I'll just wait to see. I don't care if it doesn't flower, most important it stays healthy and alive.
On another thread I read that they like moisture. I was under complete opposite impression! Didn't water them until they are very-very dry. Will know now :)

nat4b: HOLD THE WATER!! Orientals DO NOT like wet feet..Good drainage is essential and soil should be just moist-- never soaking wet. Water only when dry and necesary. Orientals are quite drouth resistant even. Over watering of oriental, asiatic, trumpet type lilies can lead to fungus and other deseases. In addition, water logged bulbs will not winter over--they'll freeze. Like Flora said--this plant had some kind of early damage but will be just fine next year--even tho it will grow stunted this year. Good Luck

Oh, ok. Thanks Interspecific. That's easier, I usually tend to underwater plants :)