What do you mean "where does your direct out come from"? You mean the speaker jack?
Sorry, I should have said "line out", from what you mentioned in this reply
I tried my line out jack through his amp and it squealed really loud which makes me think it's something there.
Some amps have a "direct out" that can be used in place of a speaker, and it comes off of the secondary of the OT.....(in your case, it's your "line out").
I asked about the OT because I wanted to make sure you had proper primary and secondary impedances (since you were running an 8ohm resistor as a dummy load), and that it was sized properly for your output wattage ......
It
is possible to damage your OT by overheating (mismatching impedance or overloading), and potentially creating an internal, possibly intermittent short in the windings,,,,BUT, it's not a common failure...........it takes effort to wreck a perfectly good OT

Here's an article on testing your OT:
http://www.geofex.com/ampdbug/outtrans.htmMy curiosity was based on the idea that the amp was fine until you did the load test,,,but is now showing signs of "shorting out"......there are plenty of other reasons that your amp could be malfunctioning, it's just easy to base a first guess on the facts of the case....
The fact that it happens after it warms up points to a heat related failure, that could be as simple as a bad resistor/capacitor,,,,but very difficult to find......
Here's some other troubleshooting tips that might help:
http://www.trinityamps.com/ForumGallery/trinity/resources/geofex_tubeampdebug.pdf