If it was a "bearing" I am surprised no noise went with the failure. "Electrical" smoke would not match a mechanical bearing failure. The reality is most of the smaller boats were never engineered fully from the ground up for a proper genset. Marketing requirements/demands force the generators in locations that are undersized, poorly ventilated , and not set up well for the very regular maintenance all the generators require. Then pile on the charter customers with many rapid starts and short cycles coupled with suspect oil change intervals. The fact that it ventilated into the cabin points to poor ventilation and design flaws. Did the thing seize up, what where the symptoms displayed? Any idea what the recommended oil change intervals are for the unit?