its very unfortunate, but the frame is cracked...theres no denying it, its right there to see...once a crack starts, it will continue later, the material has failed, im sure the shock and rear triangle will still sell though, and theres probably a FRONT end here on this site somewhere...
best bet for that front end is to have the frame taken to a machine shop to have it milled past the crack, then extend the relief slot on the rear of the seat tube...i have seen this done before
Look below where the paint chips are one the right side (2nd pic), that's where the crack is. Doubt that frame will be good for anything but lite XC or road.
the crack is right on the seat collar, thats why I have the pic of it. and it wont cause any problems. the frame can still be used for what its made for