My theory is the MB was faulty, it couldn't take the 1.39volts and it should be able to, its not some cheap 4+1 phase MSI crap, it has heatsinks on the VRM's and such built for overclocking. Asus even says vcores of 1.4+ are okay.
Faulty MB failed and took CPU out with it. OR PSU being underpowered somehow screwed it up, even thought tthe PSU did not fail. I am getting a more powerful one just in case, even thought I still think a good CX600 watt should handle
1 2600k 1.39v (1.34 now)
1 5400rpm HD
2x DDR3 sticks
2x HD 6850 at stock voltages.
4x case fans and 1 cooler fan
This go around I did not install the second card yet, I'm still using the same PSU and ran 20 passes of LinX with safe temps, and 4 hours of prime with safe temps as well. Seems stable but I'll go for the full 12 hour run of prime and another 20 runs of LinX and IBIT tomorrow just to be safe. I'm currently at 4.7Ghz @ 1.34 Vcore. Disabled C1E and SpeedStep. VCCSA Volt .925
VCCIO Volt 1.0, LLC to 75%
... looks like this CPU is better than the old one. I'm happy as long as it doesn't fail again. I think the better PSU will prevent that from happening.
Overall I am disappointed with ASUS's Quality Control, but as long as this board lasts, even though it is warped... which is ridiculous.. I will be happy and would probably buy from them again. I think I just got really unlucky.