Originally Posted by base2

From every angle it looks like that fork was involved in a front end collision.

It reads to me like applying pressure at the preload cap causes the crack at the front of the crown race to further give way and separate. As the headset bearings are being compressed, the steer tube would be being placed under tension.

I mean, that's how the system works, right?
That could be what we are experiencing here. Total system failure.

In any case, whatever the mode of failure, or degree of failure, I'd toss it. It has failed, period.