Loksound 3.0 decoder short circuit on Bachmann 32-400DS

[CPRAIL2011]

I recently took my Bachmann class 25, 32-400DS out of the display to give it a run. It short circuited immediately, with lights flashing and the speaker hissing. I was able to read the decoder settings and it indicated a Loksound 3.0 chip and not 3.5 to my surprise on my ESU console. I removed the chip and put a blanking plug on the loco and it worked fine in dc, then I chipped it with a Bachmann 36-554 21 pin decoder and it worked fine in dcc. Put the loksound in another Bachmann locomotive and a puff of smoke came out.

 

Did anyone else have a similar problem? Any advice on probable cause? Any suggestions for replacement with another Loksound decoder and where to purchase?

 

The locomotive is out of warranty, I purchased it in 2009.

 

Thank you