I don't know if anyone mentioned it, but that dinged up brass in the pictures looked like SAW brass to me, when the weapon tries to load two rounds, or loads one with a spent case half stuck. Sometimes they get completely trashed and bent in half. Sometimes they look like that and feed on through. It would account for about 6-8% in bulk military spent brass too, I'd guess. I always try to NOT get SAW brass when I can help it --I'd been getting Navy brass.
Definitely looks like you got taken by the first guy. Looks like Black Hills took care of you and also saved face --they don't wanna be known for putting out reloaded SAW brass as "match grade" anything. And I'm sure they don't, nothing I've gotten from them ever was.
Really good companies, from my experience, will stand up for the customer. I've had more than a few companies actually send me stuff because another company screwed me over somehow, from a $100 item, up to here recently, a $900 item, and a few in between. It definitely helps you narrow down who to do business with in the future, doesn't it? When a good company pays for someone else mistakes?
Other good companies like that: KAC (if you know someone there) Cammenga compasses, SOG multitools, Harris Bipods, TNVC (they're the $900 guys, big time top notch CS) Blue Force/Vickers slings, ADM mounts and Alexander Arms. These are the ones that have gone above and beyond when it comes to CS, even covering stuff they didn't have to or shouldn't have had to, and never with any money involved on my end. It'll pay off for 'em in the future though.
But if I order loaded rifle ammo, I'll keep Black Hills in mind. I'd only heard good of them over the years anyway, even back when they were small. Thanks, good companies need to get called out too.