With the case split I was able to turn the crankshaft without it binding. WTF? Looking at the piston that hit the valves, number 3, I got the impression it was crooked, so I turned the crank to pull its skirt down against the bearing carrier and lo and behold...
Here is piston number 2, you can see how it is flush with the carrier.
The cylinder has some scratches on it, some catch on a finger nail dragged over them... can this be saved I wonder.
If the cylinder can be saved the short block would just need a new piston, rod and wrist pin... I think.