DownFlyer, you went through the clearcoat, the color coat and dug into the primer. So, the panel is toast. The primer itself is a hard layer, so it will be as smooth as the attacking sandpaper. The problem is with wetsanding is pressure and finger marks. When you are inexperienced, try to act like a hovercraft; just barely touching the paint. After a few strokes, stop, wet the surface even more, wipe it down and inspect. The sanding marks should show a pattern, as you're starting to abrade the peaks of the factory orange peel away. So the paint is gonna be half shiny (in the valleys of the orange peel) and half matte (peaks). It looks marbled. Continue carefully, and when you reached the point where the sanded surface is totally uniform and matte, stop. Bring back the shine and done.
Finger marks are typical marks in the paint when you wetsand with your hand as the backing. The paper works under your fingers correctly, but between them the pressure is smaller, and this results in an ugly, wavy surface. Sometimes your fingers miss the target, aka the filled chip, and you sand down more on the side of the chip instead of hitting it directly. So, when you want good results, always use a nice, flexible backing, because it can follow the contours of the area. A rigid sanding block is only good for flat surfaces, and produces an attack point like yours.
