"Sounds like a partial derailment. Ask me how I know."
I think that we need to ask you how a short circuit at the track, and therefore between the track and the transformer, would cause a device beyond the short to burn. The short circuit, by definition, is a short route of travel for the electricity that prevents all or most of the supply voltage from reaching the load. In a track derailment, the load (lighting board) would receive less, not more, power that it would normally receive.
