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#3 OL is an indicator that the conductor has broken inside the wire or one of the ends has lost its connection with the core conductor. Even with a broken wire the spark plug may still fire in some instances. The ignition creates enough voltage to jump a gap as evident by the design of the distributor and spark plug both having gaps that the electricity has to jump forming the spark. so, effectively when you have a break in the spark plug wire conductor you have increased the total gap the electricity has to jump. At low power settings where the cylinder pressures are low it is easier to jump the gap so the ignition is still capable of firing the plug, but you can then have a misfire at higher loads as the energy to jump the gap increases with cylinder pressure.
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