Only way to tell if it is the bearings is to take off the back of the unit for a quick sneek and peek. If you see any signs of rust or such dripping from the bearing area, then you may have problems. You can also slide some paper under the unit (it must reach the back/under the bearings), and leave it there for several cycles. Pull the paper out and inspect for any water and or rust dripping from what would have been under the bearing area.
FriGeMore units were never known for robust bearing design, though word is newer units are better than older models. Changing the water level back now isn't probably going to fool any repair person long, as he will beign looking for the cause of bearing failure. If it is the bearings, and the damage was due to water/detergent getting into the seals, he will look at all the common culprits including water levels. If here was a seal over the water level screw, and it looks tampered with....
OTHO, many front loaders make high pitched noises upon spinning. Is this noise different say from when you first purchased the unit?
L.