I doubt that the axle is being hurt at all. The seals are rubberclad metal, meaning it's a metal with rubber vucanized to it. Something has destroyed the seal. The bearing may have come apart. There is a real thin piece of metal that holds the balls in place and keeps them separated from each other. If that comes apart it can slice a seal like a hot knife through warm butter real fast. Napa Auto parts might have the bearings and the seals. You just have to take the old ones with you so they can get the numbers off of them.
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