Water + electronics are generally OK if dried/cleaned properly first.
Water + electronics + electricity can be bad. The fact it initially worked is a good sign at least. The internal self heating would at least have helped dry it out a bit.
I can't imagine it would have gotten too wet under your shirt unless it was a torrential downpour.
No serial boot log at all is quite bad. Definitely got the right cable (null modem) and hyperterminal settings? Remember it boots at 115200 before defaulting to 4800. The
FAQ entry doesn't seem to explicitly mention that. I'm pretty sure I'm right about that - let me know if I'm not.
The fact the LED blinks means at least part of the power supply is working. Can you hear the drives spin up?