The forward half is up. Definately looks like a torpedo hit amidships from what I'm seeing. She split nearly perfectly into two halves.
Yup, there's not really any other good explanation.
So, what other info can we draw from this? I can't find anything specific about the scene of the incident, but I think I can make some decent guesses.
I would assume that the area around where the ship went down is considered fairly safe under normal circumstances. Otherwise, I don't think the South Koreans would be able to mount such a large-scale salvage operation so quickly after the event. Also, while the position of the border itself might be disputed, there are areas immediately adjacent on both sides that nobody seriously argues about. I would suspect that the salvage operation itself indicates that the ship went down in what North Korea tacitly concedes to be, as a practical matter, South Korean territory, no matter what they might say about it. Otherwise, I'd expect the North Korean navy to be out there contesting South Korea's operation and trying to salvage the ship itself.
These inferrences would appear to rule out several possible scenarios. I doubt the ship was looking for trouble by going into an area that South Korea generally concedes as North Korean territory. I also doubt that the ship blundered into a friendly minefield, or that a friendly minefield was laid in the wrong place (which both seem unlikely anyway in this age of satellite navigation). So, what seems to have happened is that a North Korean mine or sub got into an area generally considered reasonably safe South Korean territory. That in itself raises a bunch of questions.