This happened to me once when I had adjusted the rear brake so it was razor sharp, very small amount of movement engaged it. Somehow, bumps or heat expansion or something caused the rear brake to engage enough to really heat up, resulting in very similar, but less severe, damage. I just backed off the adjuster, rode back to my shop, and could find nothing else wrong. I was amazed that the brake dragging could create enough heat to melt the aluminum of the hub. This was on a cb750, but the brakes and spacers and everything work exactly the same as a 500/550.