It's badly worded. She fell in a sinkhole while looking for her cat. She was found dead after 4 days. The headline could have been clearer if they'd included the words "while" and "has been". *Grandmother who fell down a sinkhole while looking for her cat has been found dead. *
The cat may be dead, but the headline doesn't say so.
I don't think that's right. She's been released on bond to house arrest; the charges still stand.