What Caused Diff Damage?

Could an ill fitted rear gasket plug on a '94 Jeep GC have caused major damage to the Diff gears and inner workings, front seal, etc. ??? I bought this car used 2 months ago. So far I've had the fuel pump replaced, the Diff rear gasket cleaned, resealed and fluid changed (because of leak and bad fumes). The replacement plug for the seal was a stock rubber plug not from Chrysler. NOW! Diff failed on me while driving on the hwy. I heard a whining noise that increased with acceleration, 40mins. later I was engulfed in a cloud of white smoke. Fluid was spitting and smoking out of the rear gasket. What Could Have Caused This??? I need a similar experienced or expert opinion.

i think your problem may have been a lack of fluid or maybe not using the Friction Mod (if needed) that chrysler requires for Limited slip differential.