I still think you skipped a tooth, probably on the crank. The first time my timing belt let loose it was all still intact, cams still lined up but didn't spin. So i was a little confused, until i removed it and saw where 12-13 of the teeth on the belt were completely stripped off of the belt at the crank pulley.
If yuou didn't hear any bad noises, then it's unlikely you have any internal damage. REmember, if the belt skips a tooth or few, it's out of time. and the valves won't be opening/closing at the correct times and you will have no compression that way. simply resetting the timing back to where it should be would restore compression in that case.
have you pulled the valve cover off to look at the belt at the top/cams? what kind of condition is the belt in?
I really think you've got a bad sensor, belt, or combination of the two. catastrophic engine damage, while possible, is highly unlikely without making quite a bit of noise. hell, even just the timing belt breaking sounds like a gunshot when it lets loose (more like a .22, not a shotgun, but still very noticeable) and you "feel" the break through the car as well. When mine broke the 2nd time, i was certain there was going to be a window into one of the cylinders by the way it felt. got it home, slapped a new belt and tensioner spring in it, and runs like new. almost 260k on it and still going strong as ever, there's just no "quit" in this thing