Hi, I would guess something has jammed up inside and tried to push the geartrain forward but because the engine is in the way it's ended up pushing the gear case back. Because the gear selector is in reverse has the rev selector arm broken?
Probably close enough for me to put an end to speculation. My guess is that someone has come along and thought "I'll just remove the bellhousing......", and realised that they won't come forward any more than that 1/4" gap you can see between it and the main casing. At that point they won't go back on either. You can see in the second pic that the bottom retaining bolt is missing. And that's how it's being sold on ebay at the moment. It all turns over nice and freely though....
Caveat emptor.
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