I've had a 2000 blazer for years. Every couple of years it goes into 4WD low and stays. The solution is a dealer replacement control board ro "TCM" module, which is located in the passenger side kick panel. Not cheap, part is $600. Wish I had better news. Seems it picks up a lot of moisture and corrodes. Should be in a better place?
What probably happened is you tried to switch from 4 wheel to 2 wheel to quickly. This will cause the solenoid on the side of the transfer case to short out. There is a fuse under the hood that will blow when this happens. Replace the fuse with a similar amp circuit breaker. Then try to switch back into high range slowly. Mine did default to 4 wheel low. But when I switched to the circuit breaker and was patient during transfer case changes the problem went away. Hope this helps.
Sounds like a sensor is bad in the transfer case
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