Cross drilled? What does it mean exactly? I think it got that hot there because of a turned bearing. But that's just one of my 100 guesses...
Pics should show what exactly?
Bearings only spin because the journal sticks to them from lack of lube.
Absolutely bolts can stretch, but I wouldn't necessarily say that's why the motor went.
It could have stretched when it slammed into the side of the block, or even from the hammering it took when the bearing spun causing clearance issue's before it actually let go and threw parts.
I have to agree with YR on this one, as it looks like a lack of lube.