think my engine just blew 1st gear on my tranny.. Help

[Jfusc117]

Got my phoenix chip today and was stoked. I had a heavy duty tranny built up 1000 miles ago with HD torque conveter, valve body, ect.. I dont know if this could cause any problems but I just wanted to say I had the chip adjusted so the torque converter didn't lockup in 2nd gear at WOT. Anyways I was driving on the 65hp dd setting. At 30mph i put it at WOT to see how it did. My rpms sky rocketed to 3800 without a shift. I quickly let off. Dont know what happened there... A few minutes later i was accelerating fairly easily and my rpms were going up and the truck was barely accelerating (about 30mph). Then all of a sudden the truck went boom and slammed into the next gear and my OD light starting flashing. Now from a dead stop the truck seems to accelerate very slow and if i manually put it in first it barely moves. I know very little about trannies and even less about tuning. Can anybody help me out? Thank you.
PS the chip has custom tuning for the bts valve body and tranny