I really screwed the pooch on this one. Committed a cardinal sin I believe. After removing the balance cock from the watch I placed it in a separate cage and placed it and the movement in my Watchmaster. No problems until I decided to use canned air to "gently" blow off the remaining solution. BAD idea obviously. I had gotten away with it before by holding the can far away from the balance, but I apparently got careless.
My question is,
if I am able to untangle the hairspring, will it still work correctly, or should I start searching for a donor now?
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First, Never use compressed air near a balance spring. Heat. But you know now. Kind of like telling a hiking partner to watch their step after they tripped.
While here though, canned air is not very useful around watches. The compressed air can cause condensation and it only drives dirt deeper when used on movements. If they are already lubricated, it blows oil off of surfaces. I do have compressed air at the bench but it is used to clean the bench and parts trays. I use suction to remove dust from movements and parts.
If you have not tried to play with it yet, you can likely be successful.
Suspend a piece of thin stiff plastic (35mm film) from an upright so that it is horizontal. Find a place in the spring where you can insert the plastic between two coils with the balance hanging underneath. Now start unwinding the spring on the plastic. This will work the tangle out. Near the end you may have to work the stud from under a coil or two. At times it may be necessary to remove the stud, but in your situation you may well only do further damage.
This can also be done with a stiff piece of paper held in one hand, but it is easier with to manipulate the spring if both hands are free.
I think it looks worse than it is. Given what you described, it is likely that colis only jumped over each other and nothing is deformed.