Sounds like the 160-lb box was dropped on its nose. At $2500 (NOS), it might be economic to check with a race shop to see if they could correct (and guarantee it!) for less. Not sure how the hardening is done and I wouldn't try cold-bending it. Sometimes small gear shaft sections are hardened all the way thru which makes them brittle at the transition in sizes.
What might work at home for poor boys is to chuck it up in a lathe and grind the nose true, then forever after, use a custom ID pilot bushing on that shaft. There really isn't much side force on the nose while running so it should be OK if the bellhousing and block are square. Not for racing, though.