I've read many posts about over filled smoke units ruining locomotive electronics. But then, I've read that oil is not electrically conductive. So are smoke fluids oil, conductive or not?
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In general they are not. I've heard that some formulations that might be, but I've never experienced it. I know the names in the business don't have conductive fluid, Lionel, MTH, JT's Megasteam are all mineral oil based.
I flooded one MTH PS3 engine with MTH smoke fluid and it still works just fine. Gasket was mis-aligned on smoke funnel and it ran down the side of the funnel all over the wires and boards that were right under the smoke fluid funnel. The engine wasn't smoking very well, but I didn't find the fluid leak until it started dripping off the bottom of the engine then ot was - Uh-Oh...Oops...Oh dear what do I do now? 
I fixed the gasket, wiped the boards and wires off with a rag and it's still going strong after probably about 2 years now. Maybe I was just lucky? I am sure it will happen again sooner or later, I just hope next time it turns out as good as this one did. 
