Booting the system without a game will always give you the hardware test "cross hatch".
When you inserted the game backwards, it is conceivable that the game was damaged. I have accidentally done this before without any damage to game or system (my 4 slot does not have the upper shell).
Try checking the +5v at the jamma connector when it is powered on and connected to the MVS. Also, make sure that the game is well seated in the slot. Try inserting it, and then backing it out of the slot a bit to make better contact.
good luck!
-DT