A hone might get everything clean.

 

Sorry. But at the least, that liner needs to be replaced. Mic it and I bet it won’t be in spec or concentric
And where do you think the rest of that melted piston wound up ? You’ve probably got metal particles spread throughout the oiling system. Bearings and close tolerance parts don’t like metal shavings.
Unless you pull the engine and do a complete tear down and rebuild, you’re taking a huge gamble.
Me. I’d opt for a new engine.

 

* UPDATE* Hi All....Just received The last of my Parts needed to rebuild the engine! ((( Financially it was my only option ))) I only need to run to the machine shop and Pickup my Head.... Other than that I have every part ,Gasket and bolt all Here! I Haven't done an Engine rebuild in quite some Time So I will be taking my Time:) I'll get some Pics Posted in the Near Future! After scouring the aluminum off the cylinder wall the Cylinders all measured Perfect with my Bore gauge and I will be Honing Them and putting it back together Starting next weekend:) Wish Me Luck Hope everyone out there is doing well......

 

Have fun, take pictures and ask questions if you’re not sure what goes where?

 

*Finally an Update*
I'll Post some Pictures soon! Everything was Going Great on the Overhaul and all I had left to do was the install of the exhaust manifold, Turbo and reconnect the exhaust and plug in few connectors and try to Start it...... The last 2 exhaust manifold bolts Top & bottom Left , Forgot I had already Torqued That Top Bolt..... and you can guess what happened NEXT..... SNAP!!!! Well it only gets worse from here........After hours of trying to work with a Mirror to see from top to drill and Extract the Bolt I did more harm than good Walked away and revisited at a Much Later Date(weeks!) was getting some good Progress and Finally got it out... Not realizing I had REALLY MESSED UP!!! And I am Beyond embarrassed to admit..... Yes Screwed up Bad..... I managed to Drill too far and into the Cavity beyond the Stud Hole!!! I quietly put everything away and got online and ordered a Brand New Ready to Bolt on GM Complete Head Supposed to be here by Friday? With any Luck at all I will get it finished up and Post some Pics and the End Result! And I have to admit If I wasn't so old and worn out I really doubt I'd had this problem....... I just turned 67.... And by the way these Little 2.0 Eco-Tec Beauties aren't bad to work on at all other than some clearance issues...... I schooled myself so well on this rebuild and was very confident I could pull it off! Sad 1 BROKEN Bolt can Take you Down
Hope you all are doing well out the, Tony

 

Thanks for the update , Tony .