I doubt it is melting, more likely the the timing teeth are eating it since they hang over the center. You might have crankwalk. Some of the 99's (early 2000,s) got a bad batch of engines with bad thrust bearings that would allow excessive transverse crank movement. Symptoms of crankwalk include dying in hard turns, dying when the clutch is used, or unexplainable spark loss.
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1998 Escort ZX2, T3 Super 60 at 8 psi, SCT Xcal2, Cobra MAF, 42#/hr injectors, MSD coil, Ford Racing wires, Ford Racing UDP, Fidanza flywheel, Spec 3 clutch, B&M shifter, Trubendz 2.5" exhaust, 19mm RSB, ES bushing kit, Eibach sportline springs, other goodies....
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