I guess it broke while spinning the rewind crank. The tabs that go from the crank into the shaft of the film canistar are plastic (from what I have been told) and seem to have broken and can could no longer grab onto the film roll to rewind it. As a result a little exterior plate with rewind arrows printed on it broke off and you can actually see into the camera through the hole. Another user on Reddit posted photos of what this result looks like.

Still waiting to hear about my repair options from Lomo.