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All Mercurys are cataloged by serial number, can I get that number.
Next, is the trim motor running when you hit trim down?
In the picture locate #10, that is the manual release screw. Back that screw out 2 to 3 turns, and let me know if the outboard drops or not.
Is the trailering latch flipped up?
How did this happen. Was somebody just trimming up? Or did the outboard hit something?
Is the boat in the water or on a trailer?
Can you hang on it to see if you can pull it down with the manual release screw open?
No, it can't over extend. I wish I could have helped you with this one but you'll have to take it in, there is some kind of malfunction inside of the trim unit. Good luck.
I don't know, all I know is I spend the last hour with you and I don't make a single penny. If you have a question with billing get in touch with customer service.