Thanks everyone on the quick reply. He died almost immediately after I posted. On further examination, It looks probably like the chick that was in there with him pecked at maybe an incomplete absorption of the yolk. If that makes any sense. I am wondering if the egg shell itself had anything to do with the incomplete absorption part. It was very long and narrow. I will most likely not be incubating those types of eggs again, because of this situation. Maybe that's drastic, but oh my lord my heart.
Phoenixheart14- It was definitely a hole. He did hatch himself completely. It was dark when I checked them at 5AM with just a little flash light and they were sleeping so I am not sure to what extent anything was hanging out at that point. There was definitely not the mess I found at 8:30AM at that time though.