It took me a few minutes to see the damage, but now that I see it I understand the concern.
It seems to me the impact as described should not have done this type of damage, and especially in the location and manner of the damage.
I would tell Rolex the truth of the matter, and I would expect Rolex to make it right.
If Rolex chalked it up to abuse, then I'd consider it an honorable scar, and I'd just live with it until I got ready for a major service, and then I'd replace it.
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