Sup.
Sorry to hear about you failing your final. However, use this as motivation. To quote rocky, "it's not how hard you can get it; it's how hard you can get hit and keep moving forward".
This is a bump in the road. Use it to motivate yourself. Ortho programs want to hire people who are a) going to do well on the OITE, 2) pass their ortho boards first try, and 3) most importantly, have the mental fortitude to stick with 5 years of orthopaedics residency.
I had a 3.0 GPA coming out of third year, because I was in an engineering field and not used to memorizing lots of things before medical school. Most programs won't give a crap about your first and second year grades as long as you get 240 or above on step 1.
So, moving forward, take this MS1 final, take a month or so to recuperate mentally and enjoy life before starting second year. Then, spend August-January doing the absolute best you possible can do in your second year classes. Get A's and B's in as many courses as you can. Then, total 1000% focus on doing 240+ on step 1.
If you do that, then you set yourself up for success pending doing 3-4 aways at *realistic* programs and getting good letters. PM me if you want some advice on studying for step 1.
I had a similar experience (failed histology and remediated), crushed step 1 and third year, and ended up being very lucky with 18 interview invites. Not a single interviewer asked about my MS1/2 year grades.
Good luck.