Yep, I've done a lot of environmental sampling of wells, which includes pumping them down at times. Basically, your well is fine, your just pumping it down more quickly than it refills. You'll probably find that it's hard to completely pump the well dry, but it's possible. I'd just give it 12 hrs and check it, you should be significantly diluted by then. If not, repeat the process.

As stated, the e coli is a sign that something isn't right, and usually with a hand dug well there is surface water intrusion causing the issue.

100 percent

Man, addiction counselors are many times reformed addicts, so this is actually not that uncommon. Seen it personally.