Maybe the clutch release fork broke inside? (or slipped off the rod that sits on the slave cylinder) Try laying under the truck (drivers side if its still the same as the gen1) and see if you can feel any freeplay on the release fork.

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Richard E
1989 Montero - Stock-ish
1989 V6 Auto Raider - 5.3 Vortech Swap.
1987 Mitsubishi Starion 2.6t, soon to be 3.5
1983 Honda XL600R