Nope. There's nothing's wrong with the quashed nacelle and engine cover. The engine is not deformned as that is its normal shape. :)
You're eyes aren't blurry either. Turbine is still spinning & hissing as jet fumes spew out of the rear.
Compare to the PAL A-320 starboard engine at http://www.pbase.com/philippineaviation/image/74223530
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