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The chain and both sprockets keep spinning.What a mess... it could have been worse for you and the rest of the truck! This is also my first 4wd and I don't use it so I just took my front shaft out last week, lubed it and hung it in the garage. What all keeps spinning in the transfer case when it's in 2-HI? Hopefully the front output shaft is disengaged from the rest of the innards.