The shop I sold it to pulled the engine and found the cause: The exhaust manifold has a thin wall that separates the water jacket from the exhaust passage. This wall had corroded through, right at the #1 exhaust port, allowing that cylinder to suck water into the combustion chamber. The engine hydro-locked and ate a couple of valves. Without X-ray vision, there was no way to know this was coming. There was no external evidence.