I missed this one, but my pictures didn't. 8) What happend to you, is the uneven pressure on the forks cracked the dropouts when you tightened the nut. Once that happened, nothing could save those forks.
Yes, far more important than the direction the torque arms face is the need for a solid flat fitting washer underneath them. Justin at Ebikes ca invented the solution, which is now being copied by the china ripoffs, along with one of his torque arm designs. But in low quality steel. Unfortunately you got the same washers that don't fit that have been shipped with front hubs for years.
The C washer ( Justins invention) fills the cup in the fork that is designed to retain a wheel when a quick release hub is not tightened. Your kit came with washers that won't fit, and the torque arm is even wider.
You can manufacture your own washers, by taking a grinder to the large thick washers that came with the kit, The ones with a tab on them. Then when the the nut is tightened, the washers and or torque arms bear on only the washer, and when you tighten the nut, it will not crack the forks.
In addition to that, it might be needed to add a washer to the inside of the fork as well. Some motors axles have a very narrow shoulder that the fork bears on on the inner side. It may be required to put those washers with the D shaped hole on the inside of the fork. This will require cutting the shoulder of the axle so the thickness of the washer does not make the axle distance wider. You notch the axle shoulder with a hacksaw or file.
Fitting a front hub to alloy suspension forks is for experts. But I will be here to try to walk you through it, and get it done right.
http://endless-sphere.com/forums/viewtopic.php?f=4&t=15163&hilit=Ebikes+ca+c+washers
Here is the C washer thread above.