If you found this in YOUR motor would you start drinking?

Imagine, it just starts out with draining your oil...oil looks a little weird. Then POOF you see this:

From Engine Rust

From Engine Rust

Nasty rust...If we ran it any more then the motor would have blown. The other motor is fine! I'm really baffled as #1 why one motor would do this #2 how this could have happen #3 why I have not heard of this before.

There are so many theories....
We did let this motor sit for a month with out cranking it
It is a cheap Chinese motor, you do pay what you get for. The Chinese are known for using cheaper alloys, thought why would only this one be like this out of all of the clone motors?
I can say if it happens again this will be the last clone I'll have.
I'm going to take the motor to some people just to get their thoughts on it. I just want to figure out why this happen and how to stop it. learn from a mistake.