The starter for my Yanmar 2gm was rebuilt a short time ago and it worked
fine the first few times. Today I tried to start and the engine turned
over a few times and stopped. I hit the solenoid a couple more times
and quit. Starter couldn't have been energized more than 5 seconds
total. I looked around and smelled smoke. Pulled the engine cowling and
found the bilge, 4 foot deep, full of heavy smoke. Cut all power of
course. Starter was very hot. Found a small puddle of waxy looking
stuff under a weep hole in the starter. Apparently this stuff that oozed
out of the starter was related to that smoke, it smelled like it.

Can someone give me a clue as to what this stuff is and what the heck
happened? I'm taking the starter back to the rebuild place but there's
no telling what they will tell me. Thanks.