Failed mag-lev bearings
I have seen and smelled the result of a failed mag-lev bearing on a large industrial gas compressor. The bearings were about 12 inches in diameter supporting the rotor of the gas compressor. It was quite the sight to see knowing that this huge chunk of steel was spinning as fast as it was levitated by magnetism. One day the entire facility was filled with an awful, acrid smell and a cloud of smoke that you just knew wasn't good for you. The circuitry that ran the mag-lev bearings failed during a test and the rotor settled into the magnets that formed the bearing. The resulting heat melted the magnets encasing resin creating the cloud and smell. Blech. Once they disassembled the compressor, the bearings destruction was quite complete and impressive.