Tianjin Sea-Gull and
Tsinlien Sea-Gull of Hong Kong are connected but not the same.
The better-known 1963 re-issues regardless of zuan number stated on the dial are all made by
Tsinlien Sea-Gull of Hong Kong or Tsinlien contractors, but not made by or at the Tianjin factory. (There is, however, a higher grade and cosmetically different version available from Tianjin and US Sea-Gull, the D304 model)
Most version have acrylic crystals, some have sapphire, depending on the seller.. There may be versions with mineral crystal but they are not common. To my understanding acrylic models are still very much made and available, and are still the most common, with sapphire being second in availability. For example, I believe the currently available models from WatchUnique have acrylic on the dial side.
What you have shown is the first I have seen on that model, but I have many, many (over 100) watches with acrylic crystals and I have seen it happen once or twice on others. It can happen as a result of a knock or bump that breaks the glue's seal. It's my
opinion that sometimes heat or cold or lack of humidity can make it more likely, but that's anecdotal and only based on my experience.
It can be fairly easily fixed with some careful slot cleaning and crystal cement, easily available on Ebay or other places for about $6 USD...and you need very, very little cement. It's handy to have a crystal press but not absolutely necessary if you're very careful and can figure a way to apply even weight while gluing and setting.
A watchmaker can do a professional job and it won't be an unknown job to anyone with a few years experience with old school watches.
As a side note, I've
never considered the piece as water-resistant and I always assumed (
at best) that it
might meet the normal day-to-day standard for Chinese watches which is called the "living water" standard. This means: not meant for showeringm, swimming, washing dishes etc...and certainly not swimming or diving. The official "living water" standard for a non-ISO rated watch means that it should handle an accidental no more than one minute submersion in no more than 1 meter of water.