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Mike, you say it ran for a "bit", how long is that?
Probably slipped/jammed the chain when rotating.
You say that you can rotate it by hand. It that all the way around and several times? I would take the spark plugs out and rotate while watching the pistons with a small flashlight through the spark plug hole an see if there's anything in there. I would also watch the movement of the tappets to look and see if there is anything different going on.