Tranny men please read my torquenverter

I just blew my 727 trans,dropped it pulled the guts and found I smoked it. What happened? I was bummin. I took it to a Mopar only tranny man we looked at the tourqenverter and theory's flew . Please give me yours for food for thought as I rebuild and get a new tourqenverter as the seal in the throat was ate out.the pics show the torquenverter was not flush at the crank , but what is going on here? Please give experienced opinion we can guess later. Thanks All Hagr812