Sorry, a little more information that I forgot to mention:
The engine turns freely by hand, a full 360 degrees.
When I say it shorts, I mean the terminal crackles, or sparks, and sort of fizzles. Same behavior as when you simply short the battery.
Like I said, it doesn't really make sense to me. I'm quite experienced with circuits and wiring, so having it short like that is puzzling and extremely frustrating.
Is there anything I should be trying, something I may have missed? Thanks for the quick replies by the way.