That is odd, been running my 08 since it was new and I never had a crank positioning sensor issue.
It either melted or it was rubbing on something, it could have shorted out and caused excess heat, just replace it and see what happens the CKP isn't too expensive.
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08 FLTR candy red sunglo,with 2015 103 HO, V&H Dresser Duals with Monster Rounds, Power Vision tuner, Willy Shiny Wheels and Forks and a bunch of other stuff.