Brief research didn't turn up "protection" circuitry that could possibly cause your audio "go away completely" but I will assume that the distortion issue is just because the system is set up incorrectly. In-ear systems can be tricky to adjust as too much volume can distort the tiny "ear-bud" type earphones, and damage your hearing. Check online for your model as I found a manual that specifically addresses safe volume levels at the beginning of the owners manual, followed by operational settings, etc.
SOURCE: Hi I have a shure psm 200 iem.Suddenly started
Youre best bet is to contact shure and send it to them. there number is for service 1800-516-2525
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