Car is at the second shop again. Low compression on cylinder #1. Suspected valve damage.

Took the estimate and diagnosis back to the original mechanic who promptly changed his story. Instead of a bolt that he definitely dropped in there it is now a metal piece that broke off of some magical place inside the timing belt housing.

After much arguing he agreed to pay for half. However he later changed his mind and said to have the other shop find out exactly what the issue was and, if it's his fault, he'll cover the whole thing.

I'm concerned that the shops are in cohorts now (it's a small town) and that no matter what the issue, it will definitely not be related to the original mechanic's mistake.

I'll update after I have to pay out of pocket the $1300 it's going to take to fix his mistake.