Correct. My mechanic buddy suggested the same thing. I have an NOS hose coming today. Whitepost called and it's $150 plus shipping to rebuild the valve. I also alerted them that it's a survivor car and not to refinish the valve,just leave the exterior as is.
I asked them to examine it when it got there and they confirmed that it was activated and locked. So when the rear hose collapsed internally, and froze the rear brakes, the pressure differential then activated the combination valve (which is what they call the proportioning valve in the 2nd gen cars).
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