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Nothing else than a short-circuit can do what you explain or maybe a break of soldering inside the pack that short the pack from inside when you moved the wires.
Remember that a short circuit always happen when you don't think its gonna happen. It always take you by surprise.
You can ground your cutting tool, connect it to the active or neutral phase on 120V or on the positive or negative of a car battery and nothing is gonna happen as long as you cut only one wire at the time and you don't close the circuit between the positive and negative of your battery pack.
Now, your LIFE pack is (my guess) 99% still good. It can take small short circuit like that. For short circuit of under 1 sec, probably no internal damage. Maybe some ions welded together that can reduce internal resistance while lowering capacity a bit. Nothing noticeable.
It's more damageable to over discharge your pack while gaming than a one time short-circuit while battery is new.
Keep a look at the balance of your individual cell while charging and always charge with the balancer plug on a charger made to charge LIFE. You can make quick charge without the balance port at a higher C rating but it is not recommended when you have the time to charge it properly at a lower C rating.
Hope it really answer your question.
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