What? Where you do you think the game went after steve picked it up?
That's what happens with high dollar shipping claims like these... the insurance providers pay out the claim, take back the damaged goods, and resell them on if they can. It's just like buying your totaled car back from insurance.
There are plenty of games that get sold in our hobby that come from this 'scratch and dent' supply chain. Shops get the salvage or returned games, fix them up, and sell them on.. or sometimes use a middle man to sell them on. It's all perfectly legit... its just not many realize these 'returned games' for Distributors or salvage games are sold again without really fully disclosing their true history.
When the stuff is smashed to have no residual value, or is small enough, they just skip it all and leave the damaged stuff where it was. But for high dollar stuff with residual value... it gets sold again, someone fixes it up or someone pieces it out, and they sell it on.