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I think that's exactly what had happened! Strange that the block walls didn't get damaged.
Any suggestions on a repair?

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I'm guessing you have been running the engine with
no problems... if so just knock off any sharp edges
EDIT
it was probably bored for the new pistons instead of
fixing one or a couple of bores

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Funny thing is, I used to own this engine before- bought it back- and it is still 30 over with nice hatch crossing.

Thanks all! I'll look into welding these up and blending. The engine was running great, but I'm concerned over time, those marks might 'open up' and crack.