This is all fabulation,there was NO ocean floor collapse,the cam on BP live link is one of the ROV cams hovering around the wellhead.
Sorry to burst your bubble but your scenario is pure fiction ,you are interpreting pictures,the blasts you saw were actually current changes bringing the spewed materials toward the camera...nothing more.


"My theory: The well consisted of the casing with the drill pipe inside it. The sand and rocks that turned the gusher into a giant sandblaster that blew out holes in the riser pipe at the kinks was coming from the walls of the well that the cement between the casing and the wall was supposed to protect. Therefore, the hole has been getting bigger and bigger and now it’s like a volcano vent with the piping inside it probably a twisted mess."

A drilling hole turning into a volcano...you should write scripts for movies...lol
Really far fetch you theory,I'm sure you managed to scare a few people...ignorant ones that is...
This said,BP says it is plugged with mud and the oil flow as reversed...what we are actually seeing is mud gushing out of the wellhead...personnally I doubt that very much for to me the pressure of what is coming out seems to high to be produced only by the surface pumps.But then again it is very hard to determine exactly what is happening just by looking at one angle trough one camera.