Cracked is a term usually used to describe a console that has been modified to play pirated games, non-genuine releases. Now I don't know how the supplier is using the term, but if the term is being used as is most common, then I do know that you don't want to get yourself involved in selling pirated games, and from what you are telling me the only thing that makes any sense is that these are pirated copies.
MASSIVE fines and jail times for selling pirated copies, and it's such a huge problem that the authorities all over the planet are really clamping down on it. My best advice, destroy and bin them or hand them into your local police department with the details of the seller.
DO NOT under any circumstances even try and sell them, simply not worth the risk. In regards to purchasing from China, give Video Games a very wide berth, place is full of pirated games and as the importer, you're the one left holding the bag!
Hong kong suppliers will be able to supply region free games that will play on NTSC consoles (North American and Canadian consoles), but look for a NTSC wholesaler within the US itself for genuine NTSC releases.
In regards to Region Free games, there are some negatives about these games, so if you did decide to consider selling them I would strongly suggest you do educate yourself on the format so there are no more nasty surprises install for you.
The office is closed for the weekend, but I would suggest you forward a request for suppliers to firstname.lastname@example.org for further assistance. The team there will do their best to find some authentic supply leads for you to follow up on.
Good luck Bluesky, and welcome to SaleHoo btw : )