serious esc issues?

[ReadyToCrash]

hi,
before taking off today i noticed the esc wans't beeping the settings as usual.
i had to recycle the main battery 3 times so i could hear the beeps.
then i took off, took the heli to 100 feet or so and soon the motor started sputtering and failing completely.
fortunately was able to land in one piece.
conneceted the battery again, esc initialized properly this time and did a 2 feet hover test in order to evaluate things.
heli seemed right. landed, flipped throttle hold and, as i was carrying the heli still energized to the stand, the motor started working with the throttle hold on.
a series of issues with my esc, out of nowhere.
tested the radio with another heli and it is fine.
is my esc broken? my fbl unit?
could it be that the esc just lost its settings and all i need is to program it again?
thanks.

[band]

What ESC is it?

[ReadyToCrash]

it is an align 60-70a, but i think i know what happened.
yesterday i was messing with the esc and noticed the plastic coat is worn and the copper is exposed. it was touching the frame and causing a short circuit for sure.