These are called breach babies. Most of the time, my breaches don't hatch & die in the shell. I have had one a couple that hatched OK. It is pipping there because the air sac is there (i.e. on the wrong end)-- I used to set the ones with the air sac on the wrong end but when the majority of them failed to hatch over time, I stopped setting them. When I did set them, I would store and place them with small end up since that is where the sac was.
