Torsion bar removal Blues. What happened here????

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Did not hit adjusting lever. I applied force adjacent to the t-bar socket figuring this was the strongest area and in line with the bar.

Ok. That is the strongest part, and shouldn't have contributed to any side loading. Based on the missing paint on the top of the adjusting lever I'd take a look at the frame and see if there's any witness marks there or any indication that the adjusting lever hit the frame. What size/brand torsion bars do you have? The appear to be powdercoated, if the hex ends are powdercoated that can cause them to stick in the sockets.