I'll try to clarify one thing: 3209 remains the standard Kit belt, even in the Squared. We use it because of its length -- it's shorter than 3213.
As posted in another thread, we're using 3213 with the Double Pulley Upgrade Kit (OP 040). The big pulley is to the front, and the belt simply goes around the outside of both just as Chris says. With two pulleys and extra wrap, the longer 3213 belt fits correctly.
This is actually amazing to me -- I've never seen a belt shredded like this where the problem was other than the rear diff pulley. The more I think about it, the more I suggest a VERY close inspection of the rear diff pulley. What usually happens is the problem starts there. The belt rubs against the pulley flange and a filament comes out of the belt which wraps itself around the slipper shaft, and the belt is toast. When the filaments wrap around the shaft the belt stops abruptly, but the shaft, under power, does not, and the pulley melts, sometimes with the sonic welded flange coming off. But the problem always starts with the rear diff pulley. Not saying yours did this, but most are like this.
It is important to get the belt running in the center of all pulleys. I suggest shimming each individually to get them right. Drive pulley is EZ to move, and the idler(s) can be moved by shimming the bushing or sanding a bit of aluminum off. Diffs can be moved using Losi outdrive bearing shims.
Check it by running the car on your Turbo 35 or other charger with the bottom cover off -- you can easily see everything that way.
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