As others said, you've screwed the needle valve down too far. You can turn it back up to where it belongs, about 1/2 the thickness of the nut.
I don't think it damaged anything, but may have bent the float.
The reason the bowl needs to be drained before adjusting, is when you turn the needle down, you are pushing the float down, displacing fuel already in the bowl, so it comes out the level hole.
Try adjusting it again, but be aware you can only raise the level. Once up too high, then turning the needle in will push the float down, giving a false reading.
If you do manage to tune the Holley to the point you are happy with it, keep your eyes and nose open for fuel leaks! They are notorious for leaking both internally (gaskets and power valve) and externally (gaskets, orings, and accelerator diaphragm). Many a fine restoration has been destroyed by Holley carbs.
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Today's Featured Article - What Oil Should I Use? - by Francis Robinson. I keep seein this question pop up over and over again in discussion groups all over the web. As with many things there are often several right answers and a few wrong ones. Some purist I'm sure will disagree to no end with what I will tell you but most of us out here in the real world don't really care do we ? Some of them only bring their noses down out of the air long enough to look down them anyway. If you are like me you are only doing this old tractor stuff because you enjoy it. You
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