That looks like a diode that was part of the Voltage Regulaor Controller, which is prolly why you can't overclock it.
The overheating is a different story unless the VRC is feeding too much power to the GPU.
Either way, don't use it anymore, send it to get RMA'd, don't tell them what happened, play dumb and say "I don't know what happened"
Thanks for the reply
What should i say them to get my card RMA'd ....the card is working alright except i can't overclock it to + 20-30 MHz ....
and on MSI afterburner V 2.2.4 all i can set on core voltage is : + 0 ( Default), +6 , +12
i can't set it to + 1 or + 2 or numbers in between them....is that normal with afterburner ?