if there is a lot of ampage running through a wire with high resistance, you have just created an electric heater.
The standard Tamiya plugs are garbage if running anything more than a 540, which you are. So what is likely to have happened is the resistance in them started to melt them.
Don't worry about the cells, make sure the connectors are something good, such as Deans, and the cells will work fine. The next thing may be runtime is low, and new high capacity cells (avoid the IB4200 fireworks) will help that a lot and also give plenty of added *umph*.
Chris
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