E40D almost burned me up!

[Snowman66]

This truck isn't a power stroke, It's a 95 F-250 with 460 gas and E40D, but figured somebody here might be able to help me out anyways.

I was backing up a heavy trailer in my back yard, backing uphill. things we're getting a little hot, then blue smoke started bellowing out from under the truck, we got out and the was a fire under the tranny with drops of oil dripping on fire to the ground,It was dripping onto the exhaust pipe then the ground. I shut the rig down and ran for the garden hose,.Luckedly I had 3 together so it reached . and put it out.

This morning looked under the truck no fire damage. I wiped a little leftover oil residue down, checked all oil levels, and fired it up. everything seems to be working fine. Let it Idle for about 20 min. has a few more drops show up then no more oil.

Told my dad the story, and the same thing happened to my brother (without the fire) 2 years ago when he was backing his boat up. that time about a quart spilled to the ground. So he shut it down, let it cool off and continued on.

Question: When these trannys get real hot is it normal for them to puke oil out? or whats happening here? Thanks.