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This actually sounds like you blew the hub inside the prop. Remove the prop and check the plastic insert there. You can knock it out the back side of the prop and inspect it for cracks. If you find any, just replace the center hub and you are ready to be on the water. The hub is designed to break if the prop gets caught on something so that you do not tear up a gear case.
Yes. It would still run up to about 1/4 throttle or a bit lees.