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I'm not sure I understand what happened here to cause a rebuild/engine replacement? Did the engine overheat and seize? If so, it's a whole lot different than if they simply ran the coolant temperature gauge up. No, it's not good to overheat your engine but if takes more than a few minutes of overheating to be concerned about a new engine (assuming it took a couple miles to heat up and drove at highway speeds for the remaining miles).
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