last fall when i was first personally gettin' involved with the use of Li-ion cells, i had a cut, but otherwise intact, sleeve on a silver UF PROTECTED 18650 cell. tilted the light tail/barrel up and placed the cell into the opening and released it. it quickly slid into the light.
there was a short ARC as the light was disappearing, under gravitational control, into the barrel.
the barrel/batt-tube of the light started gettin' warm/hot *VERY* *VERY* *VERY* quickly. almost as fast as the cell and DereeLight (or Huntlight, i forget which now as my "old-timer's" is actin' up) was heatin' up, ran out side and dumped the cell out of the flashlight onto asphalt. it started spewing out some of its white innards - sorta' like a volcanic magma flow slowly emerging from one end of the cell as the plastic sleeving is meltin', shinkin', and curlin' up from the heat of the self-fueled chemical rxn.
could things get any worse?... stay tuned boys and girls...
...it was trash pick-up friday (i live on a little dead-end street with only 7 houses) and the trash had just been picked up. the garbage truck backs into my driveway to turn around to leave the street (no cul-de-sac on the end, so they either back down the street or use my extra wide driveway as a turn-around) and backs over the cell crushing it slightly. then,...
no sooner does the trash truck pull away, a brief lightning flash (*NOT* from the 18650) followed quickly by the first crack of thunder and almost immediately the heavens opened in a torrential downpour. soon the 18650 was laying in maybe a 1/16" to 1/8" deep stream of flowing water with plenty of water hitting the cell and its white innards.
i run back inside and wait for the "fireworks". 45min later after the storm passes, i go back outside.
no fireworks, no flames, nuttin' at all from the damaged cell. the white innards which were previously being "worn", so to speak, on the outside were all washed away. no flames. no nuttin', period!
Li isn't as reactive with water as some other elements (e.g. K and Na). how people get them to vent with flames (not that that was my intention by any means), and all the talk of water causing Li-ion cells to react violently, i don't know. i believe the claims some of the time - i've seen the YouTube videos of laptop 18650's going "nuclear", so to speak, and sufferin' from a "core melt down", so to speak, complete with flames. [Note: BTW, i've personally seen Na and water react with flames in an Organic Chem Lab during my college days when a classmate dumps his Na pellet down the long water trough between the "stations" on both side of the long lab bench and it ends up in the deep sink at the end of the trough - once the water gets through the oxides on the pellet to fresh Na and reacts with it, ~3' high flames nearly got a guy restin' his tokhes on the edge of the deep sink while flirtin' w/a young lady].
so, back to my account of my own Li-ion personal incident...
...after the storm passes, i go back outside to fetch the cell. it's cool to the touch. all the white innards have been apparently washed away. did i repeat this test by inserting the cell into the flashlight again? nope. my mamma didn't raise no fool. enough excitement for my old heart for one day.
however, if any protection circuitry has been damaged, it might be shorted to the case of the cell (i think this, in some fashion, is what happened to my UF 18650 cell).
my naive, semi-uninformed advice to you is either get rid of the cell (you'd be surprised how hot, how fast it can get if it is shorted), or if you are a "bold-one", using some insulating tape, make sure that sleeve's integrity is restored before use. if you are bold enough to try the second, try it outside in a large area where nothing is flammable. given my experience though and not being able to more closely first-hand examine your particular cell, i'd chuck (i.e. dispose of properly per any legal requirements) the cell and get a new one. don't take a chance. i sure won't in the future, but then, gettin' older, i've grown to be a bit of a wimp with no taste for flames, toxic fumes, and burning houses (especially my own home), as well as most other forms of excitement.