Ouch! my condolences on your engine @neftaly.
Although, one of my herne bay harbour rat friends got this (although from salt water coming back up the exaust while he was away for 3 months, is that worse?) and eventually got it working again, by using a hydraulic ram to free the cylinder, in the end he only needed to replace a single piston ring!
The golden stuff does look like diesel, but why is the water so blue?