Sorry to hear about your diff failure. Its fairly common among the gen 2 diffs from factory. As the bearings begin to wear the seals wear as well and before you know it the seals leak and boom you get water in your diff. Once this happens its bye bye diff. BUT with that being said if you pull your diff and replace the bearings and seals with new and reshim your crown and pinion gear you will be golden. There is a gentleman in Saskatchewan who is doing exactly this. Mudd & Torque is the brand name. He makes a direct replacement gen 2 diff as well as a gen 1 replacement diff or you can replace your drive shaft and diff with a helical cut "xmr" design. Much stronger and less likely to wear and break. Out of all the diffs he has rebuilt only one has failed and it was on a mudd race circuit quad with a 100whp motor, so that being said for the average 1000 his diffs should be bullet proof. FFun Motorsports in Saskatoon is also a seller of his products. Hope this helps.