Haven't seen it myself yet
playing with the sc12's for a while on both my car and a friends, the only thing thats broken in them was the barings seezing. But no melting to be seen. This Setup was standerd 4AGZE with a HKS Crank pulley (?170mm?), the engine rev limiter is set to 8500 and it reaches this on a daily basis. the charger lasted about 8months, replaced with another unknown mileage one, it's made another 8months with no dramas.
a 12,000 RPM limit for the sc12 is very conservative, I do know of a few guys that push them to around the 14, 000 mark, but you'll find that they start to create more heat than boost at that RPM
I havent yet tested the SC14 to it's full limits. Guess I'll find out when it goes bang!