Granted the AFA can be crap, but I very much doubt they would get this one wrong. True, the tip does look a little bit thick, but the end of the main part of the saber looks correctly squared off.
Considering the amount this will sell for, I'd ask the auction house for clear close up photos of the end of the saber taken from below (i.e. through the bottom of the case), so you can clearly see whether the tip is retracted inside the hole in the main part of the saber. If it's real, this should easily prove it, and if it is a snapped tip (which doesn't appear to be loose inside the bubble of course, although it COULD have snapped off prior to packing), this should also show that.