So I was replacing the heatsink, and now the computer doesn't work!

Configuration:
Motherboard: AsusTek P5B-E http://www.newegg.com/Product/Product.aspx?Item=N82E168...
Processor: Intel Core 2 Quad
Old heatsink/fan: Intel stock cooler
New heatsink/fan: Cooler Master Hyper 212 Plus http://www.newegg.com/Product/Product.aspx?Item=N82E168...

Short story:
Processor jacket on the motherboard looks bent, and computer does not start if I close the jacket on the motherboard or even apply slight pressure on the processor.

Long story:
I picked up a desktop computer from my apartment community's recycling area. The computer flashed some LEDs when I powered it on, but then died. I opened it up, and found the stock intel heatsink had fallen out. I replaced the stock intel heatsink (which was a pain with those pushpins) and the computer started working again, although with idle temperatures of around 60C.

I thought that I got the desktop for free, so why not upgrade the fan a little bit, so my wife can use it. So I ordered Cooler Master Hyper 212 Plus, and installed it today.

However after I did that, the computer stopped working. When I switch it on, the LEDs start blinking for a split second, and then everything dies. I searched online for help, and found suggestions about "Breadboarding". I realized that the computer only flashes some LEDs, the fan turns on for a second, and then it just dies. That was only with the processor in the motherboard (no RAM, no disk drives etc).

I then removed the humongous Hyper 212 plus, and tried turning the computer on, and it died within a second, just as it was happening earlier today morning. I then opened the processor jacket that holds it in place, but let the processor sit in the socket. With the jacket open, I turned the computer on, and it worked for few seconds before I switched it off for the fear of overheating.

I then tried running the computer again, with the processor sitting in the socket, the jacket open, and no heatsink. The fans started running and the LEDs were lit. Then I started closing the jacket with the computer running, and saw something remarkable.

The computer shuts off as soon as I press the jacket lever about 30 degrees. I continued to test this again and again, and realized that the computer shuts off as soon as the jacket applies light pressure on the processor. I pressed the processor lightly with my finger when the computer was running, and the computer always shuts off with a certain bit of pressure on the processor.

I think the Hyper 212 may have damaged the jacket, the processor or the socket while I was trying to screw it in to get a good fix. I have tried to take out the jacket cover and straightening it using a hammer and other tools with some success, however as soon as I close the jacket the computer just dies.

What should I do to make this computer functional again?