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1989/1992 240engine swap, transmission problem. 200 1989

Project from hell, part 27.
I placed a 1992 engine transmission in my 1989 240. I separated the engine from the transmission in order to replace the rear engine, and the front transmission seals. Finally got it running. Of the many many errors I made I failed to bolt the torque converter to the flywheel until I started the engine and realized the problem. Afterwards, I put the flywheel/converter bolts in and started the engine. Horrible metal on metal sound. I did not put in gear. Tell me. Just how screwed am I???

Well, thinking there was nothing to lose, I removed the bolts, rotated the torque converter "one hole", now all is quiet, transmission engages, all is good.
What happened? Why would the orientation matter? Did the orientation change actually make a difference, or was the converter low on fluid?
???






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