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I had sold a Bianchi aluminum frame on ebay. Got a message from the buyer a few weeks later saying his mechanic told him the head tube had been "hit", the headset could not be installed and the he would not use this frame. A refunded the buyer and took the frame back. I don't see any way this could have happened during shipping given how well I had wrapped and packed it. It seems for this to happen it would have needed to take a direct hit on a hard surface.

Anyhow, my question is is this frame really unuseable? Note the crack at top of head tube in photo below.

View attachment 283169
 

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I had sold a Bianchi aluminum frame on ebay. Got a message from the buyer a few weeks later saying his mechanic told him the head tube had been "hit", the headset could not be installed and the he would not use this frame. A refunded the buyer and took the frame back. I don't see any way this could have happened during shipping given how well I had wrapped and packed it. It seems for this to happen it would have needed to take a direct hit on a hard surface.

Anyhow, my question is is this frame really unuseable? Note the crack at top of head tube in photo below.

View attachment 283169

Buyer or shop dropped it headtube-first, if you didn't send it that way. Looks like it hit carpet or a rubber shop mat, or there would be scratches.

Unusable? Possibly. You could try bending the dented part back out (carefully, so it doesn't break off!). If it doesn't crack, you could probably put a headset in it and it would be fine. Just note the crack if you sell it again. Personally, I wouldn't have a problem riding the bike with that crack, if you decide to keep it. The bearing would still have the tapered seat, and there wouldn't be any force there unless you grab a handful of front brake or ride into a wall.
 

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Can't say absolutely just from the pic, but it looks usable to me. The bottom race of the top headset cartridge bearing seats in the conical portion below that lip that's bent in (and cracked?). If it can be straightened out so that the top bearing fits properly into the conical portion, it should be fine.
 
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