So Mr Tung asked Apple if the data from Time Capsule could be recovered. Apple said no, but has he asked for a second opinion?
Apple are great at lots of things, but not data recovery experts. This is what we do here at PicBack.
We have successfully recovered data from many damaged Time Capsules. They can be a little more difficult to work on but are still just hard drives at the end of the day.
While we can't guarantee that data can be recovered every time, we have all the right tools for the job. If anyone else is in the same position then they can read more about out service here - http://picback.com/time-capsule-recovery
This story should stand as a warning that drives do fail and that it is always a good idea to have several backups of your valuable data.