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My Ryobi went a similar way. It was just sitting plugged in with the grinding wheel up, suddenly I see a puff of smoke and it starts spinning up to full speed. Sits there for a few seconds turning about 10K RPM and quits. I threw the MF'r in the junk, cheap crap.
Go buy a Metabo at a pawn shop, usually nobody knows them as brand name and you can get them really cheap. I have 2 and they are the best hand grinders I've owned. I only paid $25 for the one I have.
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