The plant succumbed to either infection from the wound, or was infected prior and was allready weakened.
If done correctly on a healthy plant, most would grow out a new head. This would apply for cereus, neoraimondia, echinopsis, pilosocereus and cleistocactus. Basically profuse branching is almost a required trait. Exception would be stetsonia coryne, and argentine saguaro echinopsis and probably oreocereus in your case.
