woah dude yes you have a problem. you need to cut a peice out put in a repair panel then mud it in. and to do it right will take 3 coats........either that or a hell of a lot of joint paste and it will never dry in time if your friend is coming home tonight......think you need to tell him gremlins were trying to steal his dog and you valiently fought them off but unfortunately damaged the wall with the gremlins head..................sounds good to me