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I'm gonna smash this phone

Hi there davidh, welcome to the forums!

The headphone indicator means that your phone thinks you have headphones plugged in, regardless of whether or not you do. Sometimes plugging and unplugging headphones multiple times will solve this issue. Have you tried rebooting the phone?

And yes, the reason you cannot use the earpiece on the top of the phone is because it thinks you have headphones plugged in.
 
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