Damaged ipod question

Sold my slightly over a year old ipod to someone, and received these pictures of the ipod: http://dld.bz/ipod2, and http://dld.bz/ipod1. When I sold it, it looked and worked perfectly. Basically, what could have happened to the ipod? Would dropping it have damaged it like this? I really am at a loss. Any information would be greatly appreciated.