From reading most of the comments on that blogpost it seems that NaH as an oxidant is farfetched, and they somehow suggest the formation of Na2O2 as oxidant
yes, that part was a joke. I really don't think (and neither do they) that NaH is the active oxidant. Rather, in that particular case, it's likely autoxidation of benzylic alcohols to benzaldehydes and phenones by oxygen adsorbed onto sodium. That pathway is known. I don't know if it's active in your case, because you don't have a benzyllic alcohol, but you may still have adsorbed oxygen in your reaction...
I'm not familiar with the different things that could occur during high temperature. But could the heat trigger the deprotonation of one of the hydrogens to form the last conjugation to form a fully aromatic system? Or is there a way for I- to substitute (somehow?) and then eliminate in that sense?
Think of possible mechanisms as traversing a mountain range. to get from one side of the range (SMs) to the other side of the range (pdts), you could theoretically go any number of ways. You could form a radical in the first step, and do a bunch of radical reactions. That's not likely, because those are high energy steps. That's like saying you could go across the mountain range by walking over each and every mountain peak along the way. It'd take a lot of energy to reach the summit of every mountain, but you could do it. Or, you could walk along the valley the whole way and take the lowest energy pathway. This is what normal reactions do. The mechanisms shown in class are the lowest energy possiblities. At normal reaction conditions (normal operating temperatures, no heat or light), the reactions walk along the valley of the possible reaction pathways. The reason the more exotic, peak traveling pathways don't occur is that there's simply not enough energy under normal reaction conditions to get over those high energy barriers.
However, when you start heating the reactions to high temperatures (and 170 counts as very high), you start having enough energy available to get over those more exotic peaks. Plus, you have the pleasure of making a rock stable naphthalene system, so your products are energy sinks. They're so low in energy - they're so stable - that their formation is not surprising.
That said, I still don't know what the answer is, but those are my thoughts.
For more reading, you might try here:
http://www.chemistry-blog.com/2009/05/13/survivor-mechanisms/