Material defect 100%. That wood has a 60* tilt in the face grain while the edge grain appears to run straight. This is because of a crook in the log. There's nothing wrong with the craftsmanship of the cue. The joint is fine. You got a dud & it's nobody's fault, not even the manufacturer. I can clearly see the grain lines in the pic & they run parallel with the center line of the cue. What isn't seen is the tilt in the face grain, well until the cue split. Now you can see exactly how crooked the log was.
Most makers are completely unaware of how wood grain is structured and oriented inside the tree. The dark growth rings that we know of as "grain lines" is only a fraction of the entire grain structure and represent only half of the grain orientation. A straight line running at a 60* angle is still a straight line even though it's not even close to being on course. Same exact thing with this cue. The pic clearly shows the growth rings are straight, but that doesn't mean the grain is straight and parallel to the cue.
Case in point, take a "U" shaped log and stand it so the arch is pointed up. Make a cut right through the center, splitting it in two. Look at the growth rings & they'll run straight as an arrow, but you know damn well the grain is "U" curved. That's exactly what is going on with this cue. Had you laid that log on its side so the arch lies flat on the ground, then cut it in two, you'd see the growth rings make a "U" shape. Growth lines only tell you how they are oriented in the log, not how straight the actual grain is.