That definitely explains why the rod broke.
I don't know what caused the cap to come off.
The engine creates a vacuum inside the crankcase, so unless something else was going on, the cap should not have come off due to pressure.
If some debris collected on top of the cylinder head and blocked the cooling fins, the head will overheat and the valve guides will move.
The fan on the flywheel is what cools the engine as it's running.
So if grass or a mouse nest is blocking the cooling fins on any of the cylinder heads, it will overheat.
Unfortunately, your engine is most likely ruined beyond repair.
Even if fixable, it would probably be cheaper to replace it anyway.