Sundown SAE-1000D

This is where my meter reads 20kHz
 

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Did you run the timebase from end to end to confirm that it was able to reach the markings on each end of travel?

That's significantly lower than the amp you were working on but the other may not be extreme enough to cause 40 amps of current draw. It's still looking like a shorted transformer.

Can you get a frequency reading on this amp?
 
If the area of damaged enamel is just a point where two windings were rubbing, you can insert any type of insulator. The location determines what will work. If the winding overheated over a length, you have to replace the winding, generally. Without more detailed information and a clearly focused image, it's hard to be more specific.