Hole burning through floor of Freezer
Your refrigerator is likely a frost free model. There is a heating element that runs around the freezer compartment. It is probably the heating element that is causing the original damage to progress.
Most fridges have a way to turn off the frost free part, usually via the timer or or easy as pulling the fuse for the circuit. Pull the fridge out, climb behind it, unplug fridge, and remove access cover, if equipped. Look for a wiring diagram. It will tell you where you need to disable the frost free at.
If you can't disable the frost free, then replace fridge now. the acrid smoke you smell is toxic, and is detrimental to food, as well as to human life. Stop using the fridge, or disable frost free.
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