Modchips do fry the optical pickup and that alone is a great reason to stay away of them.
Edit:
Complex version is simple too, though. Laser tracking coils are controlled through software (firmware) by the DVD drive CPU (mechanics controller) and it's software is rigged to stall in case of a bus error on it's communication to the DVD DSP chip (the large 208 pin chip). If that happens it retaliates by stop any disc read related processing and then putting maximum voltage on the tracking coils, which in turn fry within a minute of the fault happening.
Sad stuff. And things like "romeo mod" (google it) were devised to attempt reducing the current that flows through the coils. But even at 5V there's enough current to fry the coils, it just takes a longer time for it to take damage. So basically it's indeed "booby trapped".




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