Check out this 727 blowup

On another note, do you think he might have hurt the Sprag on a different occasion and this is the end result??

Do you think a Solid Rear Trans Mount would have kept it from twisting? I heard they may crack the case though.

I don't think it was a sprag failure, because neither the overrunning clutch nor the front drum seem to have blown up. appears to be mainly a bellhousing failure.

Since the crank is spinning CCW from the rear, I'm trying to picture how something could have jammed so that the reaction force also twisted the trans CCW?

From what I've heard, solid or urethane trans mounts are bad news. According to theory, the trans mount should be more flexible than the motor mounts, or all the torque will be taken by the bell housing which will crack.