I had this happen to my unit shortly after I purchased it. When I turned the receiver on there was a loud pop through the speakers, the red light on the front started blinking and the unit failed to produce sound.
A tack worked its way through one of the speaker wires, causing a short. I replaced the wire and unplugged the receiver for an hour. It's worked well for the past two years since this issue.
If you haven't done so already, check all of your speaker wires and plugs on the receiver and the speakers. You may have a damaged wire or metal-on-metal contact somewhere. Try these steps:
1. Unplug the unit and disconnect all wires and connections. Let the unit sit for an hour.
2. Check all cords for damage or crossed connections.
3. Reconnect the power cord and set the volume to minimum. Turn the receiver on. If it stays on, shut it off, unplug it and reconnect everything, taking care to ensure that speaker wires and/or plugs don't make contact.
4. Plug the receiver in, set the volume to minimum (it should already have this setting after step 3) and turn it on.
It sounds like there is a short somewhere in either the wiring or the receiver. This caused the popping noise and activated the receiver's protection circuit. If it's a damaged wire or plugs or wires making contact, you can reset the unit with the directions above, replace or separate the wires and all should work. If the issue is within the unit, you'll have to contact Onkyo directly.
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