You can buy iPhones of all shapes, sizes, and conditions on eBay. There are brand new items, used items, really used items, and broken items. This 16GB iPhone 5 makes a strong argument that there should be a fifth category for "Completely Destroyed."
The auction description notes that the phone has a bent frame, "cracked" screen, red substance on the screen, a bent frame, and of course water damage just to top it off. The rear of the phone has an interesting pattern of trauma, and the auction gives no clues as to what kind of abuse the poor little device has been through.
In short, it looks like it's been through the jaws -- and digestive system -- of a gigantic robotic tyrannosaurus. But despite all that, it's not worthless. The winning bidder threw down a cool US$31.00 for this tribute to mishandling. What could this thing possibly be used for? Could any of its insides still be usable as repair parts, even with the noted water damage? Perhaps its value is simply as a piece of modern art.