Shocking news. Boat suffered a quick death to be sure. [

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Kind of sounds like you were overstressing this little boat anyway. I mean the outboards themselves are hardly precision items. When I operate mine, the prop has a noticeable wobble when it's spinning. How did you move the motor inboard? Was it still an outboard when you didi this or did you convert to an inboard config? Puzzled...
You might still be able to recover your boat. If you recall what direction it was going when it submerged. The motor probably ran for quite some time while it was underwater so it probably cruised in the same direction it was going until it hit bottom or the motor conked out.
With that said, I am still intrigued by these little outboard model boats. The last of a dying breed because if you search the auction sites, you will find a plethora of outboard motor and boat combinations from the 50's-60's. Only a few hobby-grade outboads are available these days. Graupner comes to mind.