Let the circum-circle of BCD be Γ and let the circle with diameter OD be Γ′. Let the mid-point of OD be O′ (which is also the centre of Γ′). Now OO′ passes through D and hence Γ′ and Γ are tangent to each other at D. Hence there is a homothety with centre D taking Γ′ to Γ, with ratio 2. Since ∠OMD=90∘, the point M is on Γ′. Let the image of M under the homothety be D′; it lies on Γ and M is the midpoint of DD′.
Consider the half-turn centred at M taking D to D′. This also takes C to E as M is the mid-point of CE. Let B′ be the image of B under this transformation. Since the half turn takes a line to another line parallel to it, the image of BC is B′E; and BC∥B′E. Thus AE∥BC∥B′E. It follows that A, B′, E are collinear. Observe that A, B lie on the same side of CE. Since we have performed a rigid transformation preserving C, E, the images of A, B must also lie on the same side of CE. This implies that A and B′ lie on different sides of CE. Thus E lies between A and B′. Because of this, we have
AB′=AE+EB′=AE+BC(half-turn takes BC to B′E)=AB.
We also observe that the half-turn takes triangle CD′B to EDB′. Therefore ∠CD′B=∠EDB′. Thus we get
∠BDB′=∠BDE+∠EDB′=∠BDE+∠CD′B=∠BDE+∠CDB=∠CDE=∠CBA=180∘−∠BAB′,
since BC∥AE. This shows that B, D, B′, A are concyclic. Since AB=AB′, they subtend equal angle at D. Thus ∠ADB′=∠BDA′. Thus
2∠BDA=∠BDA+∠ADB′=∠BDA+∠ADE+∠EDB′.
But observe ∠EDB′=∠CD′B=∠CDB. Using this we obtain
2∠BDA=∠BDA+∠ADE+∠CDB=∠CDE.
This completes the proof.