I would get the bike on a stand with the front wheel off the ground, have someone hold the thing steady while I pull/push the front rim to see if the steering stem thumps/wobbles forward and back. If the headset cannot be tightened to the point where it does not move, I'd say it is a serious problem, and evidence should be collected (video). Post it on youtube and send a link the PSM or wherever you got it. I don't think it will fall apart while riding, but loose headset is not good for ride stability, steering, and braking.
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