I don't know that this one is lost at all. You can easily re-set grain size with a good stress relieving and a few normalization cycles (non-magnetic with a cool back to black heat). Try and lower your temperature high-point each time you normalize to refine grains with the last cycle cooling all the way to room temperature. From there you can re heat-treat.
That being said, it's hard to say without seeing it in person if you overheated it. A brief second or two of overheating shouldn't cause too much grain growth (though it can happen very quickly once it starts). If you kept the blade for the most part evenly heated, you will probably be ok. The flakes are completely normal. Most will flake off as you agitate in the quench, the rest pretty much wipes off.
--nathan