100% agree with you, that chip looks like the insulator simply exposed the copper conductors. Putting the IHS back on just grounded out some stuff. Going straight to nail polish (not one with metal glitter) or some sort of insulator would've been the next step before firing up. There must also be some level of thickness in that sealant, gotta have a thin blade favoring the IHS side. Better to scrape that than the chip.