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The weird thing is it's sending the empty signal... Wouldn't it have no resistance at all (open) if the wire were worn through? Is there any way the float could have fallen off?


You got your terminology mixed up, an "open" is infinite resistance. If I remember correctly empty is higher resistance and full is lower resistance so the symptoms make sense. An open should show infinite resistance, thus the empty signal.

Steve
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'93 4Runner V6 4x4 auto tranny
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