Definitely sounds like the outer sheave wasn't installed all the way or something and it either broke or slid off the half moon key. Get me pic's after you tear it down and I'll see what your going to need. You may have to replace the outer sheave.
I have been hearing about these front shock extenders bending on the econo lifts. Get me a pic of this for sure. I want to see what exactly is happening. I have an idea but not sure. I'm thinking the frame on the cart where the whole is drilled and bolt installed is giving way. I didn't like this design and modded mine a long time ago when I installed this lift on my G16. I also modded the one on my G2. I'll try to get you pic's nat so you can do what I did. It is very simple and inexpensive. I added two quare type u-bolts just under where the installation bolt goes on the extenders to help support it on the frame. I also installed a piece of L channel on the inside part of the frame to help support it.
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