Edited Date/Time:
How do I fix this? or should I return it?
What do I do?
Buy one of these, pound the old one out from the bottom of the fork using a punch or something, then tap the new one in carefully & evenly.
Or take it too a shop. Looks like it happened cause you're over-tightening the bolt, you only need to snug it up to remove the play/wobble, then tighten the pinch bolts on the stem.
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