We took the valve cover off and accounted for everything. I was looking at the manual and I am wondering if it might have something to do with the starter clutch. My first thought about something missing and falling was my first thought as well. But all the parts and tools were all accounted for. I am stumped on this one for the most part. I have been doing valves on bikes including my Bandit for years. I have never came across something like this before. Only possibility that I can think of at this point at one point when he turned it backwards, it screwed something up. I haven't torn a Bandit motor down yet, so I can't get a visual picture of what the inside looks like. BTW, is the cam chain tensioner automatic on Bandits? I know that on my Honda, I loosen the nut and it then adjusts itself. Is the Bandit something like this?