Advice for fire-damaged dulcimer
Instruments- discuss specific features, luthiers, instrument problems & questions
I'm pretty much in agreement with John, a combination of heat softening of the glue and string tension resulted in separation of the "flat head." I would guess that there is little other structural damage.
You have three clear choices, (1) a very expensive "restoration" (2) a repair to playing condition (3) giving or selling it to someone who would repair or restore it. Don't throw it in the trash, at least give it to Goodwill where it would find a new home.
McSpadden instruments can have a variety of signatures, even if factory assembled. From the shaping or the sound holes, I'd say a kit is a good guess.
It may need new "bridge", spacer, strings, and tuners, but McSpadden can readily supply them. The re-gluing is pretty much a handyman project, not lutherie, and you might want to make it a DYI job. If I was doing the repair, I'd probably keep the discoloration and the story.
In any case, it is always a good time to get another instrument.

It has a screen door handle on one side so it doesn't need a case