So, I found out that this was the cause of this And this 02 bugeye, 150k miles, bearing locked up at 2k rpms between 1st-2nd gear. Bearing is stuck in place and won't budge. I had initially thought that the composite cam gear had caused it but found out otherwise today. This happened a few weeks ago, currently replacing the engine with a lower mileage 04-05 205. Just thought I'd share my great luck with everyone, ever seen something like this before?
Jump time? It exploded time lol. There are a few bent intake valves that I can see, I'm hoping they didn't damage the pistons as this happened at low RPMs. The heads will come off once I get my replacement motor finished, shooting for Sunday or Monday.