perhaps you should report this issue- as it may be indicative of an unsafe product. I would think the company would at least replace it with a new one (most likely so they could determine what is wrong with yours, or to avoid any bad PR)

option 2: I would return it to store (especially if manufacturer brushes you off). I would make sure the manager cuts the cord so it cannot be put back on the shelf.

* it may have been caused by a power surge, but the GFCI at end of dryer's cord shoud have tripped. Rather odd