The results of your checks confirm that the 5V regulated supply on the controller has failed, but unfortunately the actual cause of this failure still remains unknown. This particular fault should not have anything to do with the load on the motor, and it may just be that a component on the controller has just failed for no apparent reason.
Without knowing how robust the 5V supply is, I don't know whether it would be damaged if the thin red wire was accidentally grounded somewhere causing a direct short. If the 5V supply has some form of built in current protection
(eg. a suitable resistor), it should be virtually bullet proof and able to withstand a direct short, but I'm not going to check this by deliberately shorting mine out, just in case!
Tom has previously indicated to Karen that failure of the 5V supply can happen if you incorrectly connect the battery leads
(Reverse polarity) but from your account of the failure, I would say this is definitely not the cause:
It worked perfect for 2 weeks, then all of a sudden after a few flickering lights on the battery gauge the motor does not work anymore.
I still don't understand why the battery gauge lights would have flickered, unless there was an intermittent connection somewhere on the gauge wiring.
I think you will just have to wait and see what your local dealer has to say regarding a warranty replacement .
Alan