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.
Dr. Corenman