The clutch line or slave cylinder wasn't leaking was it? Brake fluid is flammable (not easily like gas, but if it gets hot enough it will burn). If it was spraying on the hot clutch (possibly why it was slipping?) maybe that's what set the fire.
before doing anything to the transmission adjust your clutch pedal. I had just replaced mine with OEM dealership kit & it slipped bad at boosting levels, old man came adjusted the pedal, NO MORE SLIPPAGE. The pedal was way to tough, it smoothed out.
LoL, not if the line is one of the stainless steel brad hoses......
the hose will carry currant from one end of the hose to the other.
It can, on an engine without a ground, carry currant from the slave cylinder to the firewall.
It doesn't have to touch anything.
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