> If the light shorted would that have caused the meltdown?
Yes, in fact that is the only explanation I can think of for the meltdown.
> Remember, the white wire from
> the warning light to ignition is in good shape.
Which means the short was on the yellow wire side of the light. When the
cutout contacts are closed, the yellow wire is connected more-or-less
directly to the battery, so any short is going to produce smoke. This may
also damage the control box, as the short current is flowing through coils
and contacts inside the box.
The yellow wire is also the generator output, so a short has the potential
for damaging the generator as well.
Randall
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