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  1. Not all headset bearings sit deep in the frame cup.
    While aesthetically it looks wrong, it’s actually fine.

  2. Once you install the stem and top cap and set the bearing preload it’ll be fine. Without any load on the bearings the steerer will flop around in the headtube.

  3. Your top bearing is blown apart brother. You shouldn’t be able to see the bearings in a sealed bearing. I’d pick up another and replace that.

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