I'm guessing what you mean is the image stays oriented normally, but the axis of stretching rotates around the Z axis. Sound right?

I'm not sure of an easy way to do it in one step. However, you could create a sub project and choose a frame size that doesn't match the source media. Go into Pan/Crop, uncheck 'maintain aspect ratio', and check 'stretch to fill frame. Set up a rotation of the image through the whole 360 degrees. Render this to a new file.

Now in the main project import this new file, go into Pan/Crop, and set up a 360 degree rotation in the opposite direction.

Alternatively you could nest the sub project in the main project and skip the render to new file step. This would also make it easier to tweak the pan/crop parameters until you get exactly the effect you want.