Sounds like the cam might have hit the crank if the lobes are "shredded" and torn up. When it went together, did you turn it by hand first, without a plug, & check for clearance? Sounds strange to me, but if the cam hit the crank a few times, that's going to be the problem. Does the crank have any marks at the point it might have hit on the way past the cam lobe?
You said in the video there was 16 ounces of oil in it, just curious but what is a "normal" oil level in that motor? I run synthetic always, especially for the break-in period. People say it won't work to seat the rings, but that's complete BS, along with the added zinc argument.
Will be curious to see what it was, since this is sounding fairly strange. Hope it gets worked out ok for you. Sounds like the whole thing needs to be taken apart, cleaned out & then put back together fresh. Chin up buddy, it's just a machine & you'll figure it out!