Rolex Datejust damaged Case

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An exhaust expander will also expand the whole diameter while removing the flat side.

That case is history (financially speaking).
Not if you stop when it gets 'round'. I've used exhaust expanders frequently in the shop to get things back to 'round' that were oblong. As far as this case, you're probably correct anyway.
 
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I hope that wasn’t on someone’s wrist when that occurred
Edited:
 
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I hope that wasn’t in someone’s wrist when that occurred

Yeah, no kidding. Just thinking about that reminds me of some scene in The Abyss where Ed Harris's wedding ring is holding a door open while he's still wearing it....