2:01 PM PT -- The Magic have released a positive update on Cannady ... saying he had surgery this morning to clean out his ankle.
The team is also saying he suffered an open right ankle dislocation with a severe lateral ankle sprain ... but his bones and cartilage remained intact.
Cannady will remain out for the season ... but is now expected to make a full recovery.
Devastating moment for Orlando Magic guard Devin Cannady ... who was stretchered off the court after suffering an open fracture to his ankle early in Sunday night's game.
But, the good news?? The 24-year-old baller spoke with his teammates and is in "good spirits" after the gruesome incident.
It all went down with 3 minutes left in the first quarter against the Indiana Pacers ... when Cannady hustled down the court to defend a fastbreak layup, but fell awkwardly on his right leg.
Cannady immediately screamed in pain as blood gushed from his ankle ... and teammate Mo Bamba rushed to his side and ripped the jersey off his own back to cover the injured area.
Cannady was taken off the court on a stretcher ... but was able to give a thumbs up to the fans, players and coaches while the entire arena gave him a standing ovation.
The Magic later revealed the seriousness of the injury -- an open fracture to his ankle, which will require surgery.
Despite the heartbreaking incident, Cannady appeared to be as positive as he could be Sunday night ... FaceTiming his teammates from the hospital.
Cannady also tweeted an update Monday morning ... saying, "In God’s Hands, He’s Never Failed Me!"
Bamba spoke after the game about his decision to use his own jersey to help during the incident ... saying, "I just saw my teammate was down, and I just did what he would probably do for me."
He added ... "I just thought quick and I didn't want him to see it. I just took my shirt off my back and gave it to him."
Cannady appeared in 8 games for the Magic this season ... averaging 4 points. His 2021 campaign is over, but here's hoping for a speedy recovery.
Get well soon, Devin!!
Originally Published -- 6:57 AM PT