'84 Tercel 4WD shifter

[gd88]

1984 Tercel SR5 Wagon, 4WD, I have 270,000 miles on this beauty, I have put money & heart & soul into it for quite a long time...............

..............ANYWAY -- I was sitting at a light with car in gear and clutch depressed, in 2WD as it normally is. You know, just waiting for light to change. Then the 2WD/4WD shifter just kind of popped, like popping out of gear -- problem is there is no neutral position on this shifter. After this, when I tried to put it back into 2WD, I had nothing, like car was in neutral. Went to 4WD and then I could drive car, it got me home.

Any ideas on what problem I'm looking at here? Will I damage anything if I drive it like this, in 4WD position if front wheels are not engaged? Dumb question probably, but I need help.

Thank you!