I know this is a dead topic but I thought I would give an update if anyone is curious. I went and warranted the starter motor and was able to install a new one. Been about a month now with the new starter and no issues! Still find it unacceptable that the first one shorted out like it did.

Someone goofed and let the pigtail touch the metal case. Probably an incorrect figment of that rubber gasket. That’s a direct battery short to ground. Yikes You’re talking about this wire and gasket correct? The burning smell is is coming from the motor itself on the side that goes in the transmiss...

Hello. A few days ago I replaced a problematic cheap aftermarket starter with a remanufactured one from Bosch. It worked flawlessly until yesterday. Out of nowhere, with no warning after a short few mile drive, I went into a store for a few minutes and came out to a strong electrical burning smell. ...