Myelomalacia is the thinning of the cord due to neuron dropout (death). It can be seen at the level of the injury and somewhat lower (1-2 levels). A C3 level injury would not cause myelomalacia in the thoracic cord. I think you have noted you want a surgical fix so I would advise you to find a surgeon who is technically proficient and can hopefully yield a good result.
Donald Corenman, MD, DC is a highly-regarded spine surgeon, considered an expert in the area of neck and back pain. Trained as both a Medical Doctor and Doctor of Chiropractic, Dr. Corenman earned academic appointments as Clinical Assistant Professor and Assistant Professor of Orthopaedic Surgery at the University of Colorado Health Sciences Center, and his research on spine surgery and rehabilitation has resulted in the publication of multiple peer-reviewed articles and two books.