My shift cable started on fire Options

[Topaz95GT]

So the other day, I noticed my speedo was jumping around. Eventually, the speed sensor on the trans fouled and it wouldnt shift out of first/second. I drove it about 5 miles going no more than 3500 rpms to the nearest shop.

They quoted me $360 for a part that I found on ebay for $10.99, I also told them I wasn't going to pay the diagnostic fee because I told them exactly what was wrong when I brought it in, stating it should be a very quick fix. (Thanks google!)

Then as soon as I got the car home, something was burning and it smelled like paper. I drove to the nearest mechanic and it was visibly on fire at this point. I put it into park and then it wouldn't come out of park again. I had to have it dragged up a tow truck and towed over to the shop that last worked on the car because this mechanic was too afraid to touch the car, even to tell me if there was malpractice at play here.

So all I have is the shops word on this. They didn't give me a quote yet to replace the burnt cable but I assume it to be somewhere around the "not cheap" range. They claim they tried to sell me a steam clean but I have had them steam clean my car the last 2 times they worked on it and the last time it wouldn't start because there was water in the engine or something.

My question I guess is this: Would driving it in a low gear cause oil to spray everywhere, so much that my car happened to catch fire the next time I drove it? Should I man up and pay for this or should I get the local news over there to get to the bottom of this?

Thanks!