Any idea how much current those old alternators can pump out?you should consider it a needed step now to remove your alternator from the engine , and take it to a known & reputable repair shop , or like a NAPA or even ADVANCE auto parts , that indeed has a full wide range functions manual belt driven testing machine , to confirm and verify your 27020- is in good working order after the thread title topic above occurred ...
- generally if a NipponDenso OEM TOYOTA 27020- full-fields for any reason , the life-span of one or more of the diodes on its rectifier board cease to exist instantly ...
- the remote but real possibility you suggest above , the 2 white wires that are on the back side of the fuse box , one with a blue stripe , suddenly touching together as you were driving is a real possibility ...
- what is also a more likely possible scenario here i think for sure is , one or both found a direct path to Negative N- Ground via any possible metal like a 10mm hex bolt MALE threads that affix the glass tube fuse box to to the kick panel protruding out past the captured spot welded female nut
- you should look for evidence of both the above , that will lead you to the focus point of damage that created the smoke you experienced if present ?
- lastly , have you by chance examined in good detail , the GREEN 4 pic connector plug and its HARNESS side mating buddy , from the column mounted key switch down ?
- when something like this occurs , that exact location between the green connectors , can and does often have a little melt down of its own inside between the brass male and female terminals , that can;t actually be seen if you do not try to physically un-plug the 2 apart ...
- this is one reason why you see all the CHINESE made clone FJ40 green plug electric key switches for sale everywhere you go online these days popping in your face on AMAZON for example ..
..
hope this helps
good luck