will the controller work at all if it is damaged? Up on the stand it will still balloon the tires.

Sounds like the controller might have survived. But it's hard to tell actually.

Can you shine with a light inside the mounting holes to see if you damaged some copper? (arh well, i am pretty sure you did, since it didn't worked with the long screws in)

Check if the motor runs smooth without a pinion, and turn it by hand. it should feel without any resistance. Then put to two of the three wires together, and see if it's getting more resistance.

it turns fine and if I put two of the wires together I feels resistance.

hard to tell what the problem is. It can be either the motor or the controller, or both.

Anyway; i wouldn't drive a damaged motor like that.

I learned the hard way as well...I had my 7xl and 9920 for a week and toasted both due to longer screws.

we'll see what happens I just ordered a 8xl with RCM heatsink and hopefully it works and I wont need a new controller. Any clue what BK charges to fix a controller? It should be quick since I am in germany.

I depends...I had mine fixed for free when, if I'm not mistaken, it got wet, but others haven't had all that great of service. Personally, I can't complain. Yea, it took a couple months, but better than spending $200 on another...

If the heatshrink on the controller is melted/distorted and the smoke came from there, you could have damaged one or more of the FETs. The controller could still technically work (if the bad FETs "opened" when they smoked), but there are a bunch of FETs in parallel so if you smoke one/some, then the others will be forced to work harder and will heat up more.

IMHO, I wouldn't run it until it's fixed. Running it as-is will just shorten the life of the remaining FETs.

You more than likely damaged the motor.
YOu may have damaged the esc as well.
You may want to look at some options.