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Well I don't think you are being told the full story.
1st off there's no way I trust anyone to rebuild that engine. Just buy a new / refurb engine and walk away.
However you got so much going on there I'm not really sure what is happening. If there is anyway you can get it put back together and drive able, I think you should sell it / trade it, or find a new mechanic.
Back to your questions, if an oil pump is bad that can definintely mess just about everything up. Why you wouldn't get oil pressure warning I don't know.
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