75 optimax shift shaft help

[marshrunner757]

uploadfromtaptalk1429142175933.jpgOK guys I know the picture is dark.
My son has a 75hp opti. Was very hard to shift and finally won't shift. Thought it was the control, but its not. In the pic you can see the shift shaft entering the lower unit. To me, those splines should be inside. Seems like the shaft has somehow moved up and the splines are jamming on the opening? What are your thoughts? Any help is greatly appreciated.