So movement up / crystal down as you have placed it in picture . If you place it the other way you will get rice in the watch
You can place the silica packets on top of the movement if you like . Then seal the container and leave it be for a couple of days .
The case back gasket is more of an flat exact part on a DJ to fit in the groove .Rather than a stretch to fit O ring .
I reckon due to poor fit etc you report that is how the moisture has gotten in !
The good thing with it being for a DJ you can get the exact case back gasket ( either gen or aftermarket ) which has a part number. It should be easy to source using Google ! I don't know the part number off hand but it should easy to identify the gasket you need . I know Cousins will have them , other watch bits suppliers , loads on Ebay etc .
With regards to just opening the crown and wrapping in paper towels . It may dry out the crystal visually but the moisture is still there . When you seal the watch back up it will come back . A bit like moisture that comes and goes in a unit of double glazed glass were the seal has gone . The moisture comes and goes due to atmospheric pressure but the moisture is still sealed in the unit .
That is why you need to open the case back and crown and use silica . Give it time to fully dry out .
If it was my watch I would order a new gasket and leave the watch open in the container until it arrives . Then replace the gasket and close the watch up .
Before I sealed it up I would leave it in the open air near a bulb as a low level heat source for a couple of hours .
Hopefully there no moisture under the crystal , the watch runs OK and you have gotten away with no corrosion to the movement. That might be enough to make the watch water tight again , and get it back on your wrist . Perhaps a further pressure test to check the WR might be prudent
Of course you still have the option of sending the watch away to Grimlock as well .