clutch woes :(

[moneypit]

so yesturday i finally got my new carb on and got to ride, but that only lasted 45mins. i was in 4th when i saw my clutch lever boncing all around, so i stopped thought my cable came lose at the bottom, but everything is still "looking" fine till i grab the clutch arm on the case, you can just move it with no tension on it... anyone have this happen what am i looking at possibly

[honda380]

ive seen them crack at the very end of that rod, there is a flat spot cut in the end of the round shaft and thats where i saw it break. i dont know if that was the problem or not, it was a used engine and it got fixed before it was ever ran. hope this helps... Corey