Any logical explanation as to what this is?

I was just looking through your post. IMO I would not send the cylinder out for repair. I dont think it broke that much off the bottom and I would just use a die grinder and radius off the bottom of the cylinder and put a good chamfer on the inside where the piston rides up & down on it then give it a good hone job.

It looks like they use JB weld or devcon to epoxy those wings in or what ever it was. I would at least give the bottom end a good flushing several times with pre mix if you dont split the cases.
 
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