Gauges going all the way on startup + smoke

mvh said

But I don't know what the consequences of grounding the sender lead would be

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If you ground a sender wire the gauge it is attached to will act like a fuse. The coil in each gauge that heats the bi-metal to make the gauge needle move will get so hot that the coil of wire will fry like a lightbulb filliment or a fuse. The bi-metal might even get damaged from excessive heat.

The IVR will just provide as much current as is needed