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I feel your pain!!! I had the same issue on my 09 M3. with 75k miles. Loose valve dropped into cylinder# 8. I end up writing a letter to BMW since it was my second M engine failure. They provided a new engine at discount cost at $10k and end up putting a NEW engine for $17K including labor.
It was more expensive but i did not want to deal with bearings, engine top covers, valves, water pump later on.
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