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I'm truly amazed you got a sterling rear to break like that...
You and me both man. I'm not hard on my truck. I don't even tow that much with it anymore. I'm guessing the pinion seal blew out and started puking out gear oil. That's just a guess. The rear differential housing had fluid all over it. The truck started almost hopping in the rear when it happened. Felt worse than a blowout.
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