And the upper needle bearing would not have fallen into the transmission; unless, the lower bearing is also destroyed. Both bearings are identical. Now obtaining the anti-rotation washer might be a problem as I problems on the last one myself but I did find a Tecumseh one that was still available.
As the upper hole being egg shaped take a magnet and if the bearing outer shell is still there. What you are seeing may just be the bearing that is egged.