Miata problem, will go into gears but wheels won't move. HD

Car is 1994 M edition Miata. Please help! Wheels will NOT move! My guess is that something maybe loose (Driveshaft or rear axle??) and worst possible scenario is that the torsen diff is shot. Drive shaft seems to move just fine and speedometer also works. Car idles FINE, and goes into gear just FINE. But, it does make a not so small grinding noise coming from the differential. Clutch was changed 2k miles ago. If you pay attention closely, the left rear axle that connects to the differential is a little bit loose, will try to fix that ASAP but I doubt that is causing the problem. This happened a day after my friends and me installed new coilovers for the car (The installation might very well be the origin of the problem). We were driving the car and was at a stop sign waiting for cars to pass, and then dropped the clutch a little bit (Not that rough). Afterwards, the car made clanking noises and will not move wheels but will go into gear 1. Pushed the car all the way back to the garage and jacked it and recorded this video.