Yes, and it still worked as a Clicky, so not a complete failure.
Should be noted as well that HDS lights are not dive lights. Both Rotary and Clicky were tested to 2 atmospheres (66 feet). The issue is that the water pressure activates the button, not that water gets into the light.
The supposition that the Clicky is more robust than the Rotary is really just that... a supposition. Yes, you can get grit under the Rotary mechanism that will make it not turn as smoothly, but as far as damaging the lights to the point of failure... both are equal. It's a hard concept for folks to understand but none the less true. When a Rotary mechanism fails, the light then just becomes a Clicky.
It's a bit like that little hole in the Rotary tail that is now plugged. That hole made no difference for the water proofness of the light. It didn't matter if water got into that hole, as the inside of the mechanism is sealed. The plug was only put there for aesthetics... simply to make folks feel better about the light. Doesn't do anything else but help the supposition that it makes it more water proof. A bit light painting lightening bolts on your car... doesn't make it go any faster...