RE: Someone explain this to me.
 

Definitely could be. If not then a cut strand is still a reason for major concern. I would replace the string or cable before shooting it again.

Yes, you did it right and yes, it is essentially the same when we are talking about cm. :)

Replace the cut string/cable and then start from scratch.

RE: Someone explain this to me.
 

That would be my guess! Your peep moved when you backed off the limbs and now your anchor point moved. Do you find yourself adjusting your head now when at full draw to see thru the peep?

RE: Someone explain this to me.
 

Not that I noticed, but anything is possible. I lowered my rest, and had to re-adjust my sights, but I am still getting contact on the MZE. After seeing that popped strand - I ordered a new WC cable. I wouldn't guess that everything needs to be changed - the bow is only three months old. I'll just pick it up for now - and continue the saga when the new cable arrives:D.

RE: Someone explain this to me.
 

I would also suggest changing the cable slide if that is where the damage occurred in the first place. A hicks teflon slide or NAP "carbon slide" both work very nicely with the bow in question.

RE: Someone explain this to me.
 

When you change the draw weight on a single cam bow you affect the timing of the cam which can affect nock travel and often will change nock point height position (both of which can/will cause POI changes)