Yes, the sleeve was obviously twisted in the case as it was pulled out. It most likely caught the ring in a port, breaking the ring and burring the port.

Probably most of the damage to the engine was done at the time the head was raised?

At this point and considering the damage done at disassembly, I would recommend a very experienced engine person to get this engine going again. Possibly even sending it back to hobby services?

Enjoy,

Jim