Burned up front diff, hole in axle housing.

Today about 2 hrs into my work day I pulled onto the job and just as I did the rear end starts popping and I look back and it's smoking. Totally burned up the front differential...

Got into the company lowbed and hauled my truck to Sacramento to Bj's Gears and $3500 and one day later I'll be getting my truck back. He said the diff was completely dry, less than a quart of oil in the housing. I should have been on top of this stuff but I checked the fluid level which was low and topped it off about 4 months ago. I pull a company end dump that has a leaky ram so there was some oil on the rear end that I figured was from the trailer.

Anyways to cut to the chase the owner of Bj's let me know that he found a hole in the axle housing under the spring (Pete low air leaf, double reduction rears). My question is this: How does one develop a hole in an axle housing in this location? I plan on staying on top of the oil level religiously until winter when work dries up again and stripping the thing to weld whatever hole is in it back up. I've not seen the exact location of it personally just yet but the thought of there being a hole in that location kind of boggles my mind. Anyone ever seen this or experienced it first hand?

 

Already got the diff changed out, bj's gears in Sacramento has a great stock of parts and had the double reduction setup I needed, does real quality work at a fair price and quickly as well. Sounds like advertising I know but they've been great to deal with.

 

Ps, mighta been cheaper to switch out the axles with used in hindsight but I do like to know I've got the double reduction if/when I need it.