My guess would be that it seized? If so the piston pine being tough to get out is normal as they very slightly bend, can't see it but with the tight clearances it is just enough to make it very difficult to come out. Do you know that yours has the updated crank? I would check that everything feels good as far as crank and connecting rod bearings and get new pistons (SKIDOO) and replate cylinder. I would go with us Chrome they do awsome work are very good priced fast shipping and fast on the core refund. Dealt with them multiple times this last year. As far as lack of oil, were you running non ethenol? The new ethenol fuel is just bad all the way around for high performance engines and especially the way are sleds are seasonal use. I have seen ethenol break down in only a week in a lownmower. The other thing skidoo does have problems with their rings flaking causing it to start taking out the cylinder. This is not every sled and normally last tell around 2000 miles. I still recomend skidoo pistons. Weisco pistons have had lots of problems with then tend to heat and swell faster then the cylinder does causing it to appear to cold sieze. Have had this happen with 2 sets of weiscos and then got skidoo pistons and no problems. Spi run fine but are made from weak material and the piston itself chips and ring pins are weak. Rk tek works very good also but cost more worth the money though. My opinion and many others will agree though the 07 and 08 are a ticking time bomb even with the update. I only bought my 08 because it was so cheap I can buy a whole new motor and it is still cheaper than retail on it.
If it was me I would get spi pistons and get it running and sell it next fall and find a good real on xp, otherwise get rk tek kit it skidoo pistons. If you have any other questions feel free to pm me.
