yes, thats what they are ment to do
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yes, thats what they are ment to do
The clicking is the relays inside, they will click when you change direction. Which red wire did you cut, the power wire or the signal wire? Depending how the electronizes are made, the chance are it will need power form the RX to run the logic side of the controller. Regarding it cutting out at the end, have you checked the batteries? A picture would be helpful of your setup wired up.
The batteries may be running low on charge but it still doesn't explain why the receiver and wires got so hot