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Yes
Louisville
Bill Self
CCNY, led by Irwin Dambrot, won both the NIT and NCAA tournaments in 1950.
UNLV was a #1 seed when they won the NCAA Men's Basketball Championship in 1990.
Belmont, Vermont, Norfolk St,
None (as of 04/04/2010 2:40 EDT) #8 seed ('85 Nova) #6 seed ('83 NC State) #4 seed ('97 Arizona)
Indiana defeated Michigan 86-68 in the 1976 title game
Michigan was a #3 seed when they won the NCAA Men's Basketball Tournament in 1989.
#8 Villinova
Yes a number 16 seed has beat a number one seed in the NCAA basketball tournament, but it was in the womens' tournament. In 1988, 16th seed Harvard beat 1st seed Stanford in the womens' tourney. (Answer by Mymomisnfat) It also happened in 2018 when the University of Maryland - Baltimore County (16th seed in the South) beat the University of Virginia (1st seed in the South) by a score of 74 - 54.
No, a 16th seed has never won the tourney. In fact, in the men's tourney, a number 16 seed has never beaten a number one seed. A 16th seed has beaten a number one seed in the women's tourney only once.