505/1D frozen but not seized

Chris topher /
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1982 Sachs 505/1D

Drove around yesterday with no problems but today when I tried to start it up it froze. Peddled along and as soon as i pulled the starting clutch lever the wheel locked up. Immediately thought I had seized the engine so I pulled the flywheel cover off and sure enough it wouldn't turn, low an behold I tapped it with a hammer and it freed up. So I put the cover on and it fired up first try.

What would cause this to happen?

This may or may not be related: the wheel spins at idol on the stand. Folks say the wheel should turn a little but what is a little?

I would appreciate any insight.

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