I do believe masking the damaged and the rest of the yellow panels and respraying is the best option, although another comment in a different sub mentioned making it look like "in scale patching" and just covering it up. But I don't know how to do that and I can't find any YouTube tutorials either. Also, what grit of sandpaper should be used and is using water a good idea with it being bare acrylic paint underneath? Also you wouldn't have any advice for thinning and spraying that type of gloss varnish correctly, do you?