Yeah USPS definitely reuses tracking numbers, but how were these guys able to overwrite the delivery address? I feel like this shouldn’t be possible unless they are inside the system.
Having a connection/s inside who are in on the game would make sense.
My guess is that the validation just validates the numbers which are old and valid and some automated system notices the label and routes it. I bet their system is a disjointed system and not set up in a way where every step checks every thing. It's very plausible it was home grown in such a way where its like this