Right.... so an update and the testing I've done so far as I'm still waiting for a response to my support ticket a week later.
I added a new EVGA PSU and control hub to the system and did a full tear down and check of all wires. There was no sign of burning or melting on any other wires and no grounding issues could be found. 'Great' I thought and now have a fully working system.
However, I decided to retest the two melted/burnt out control hubs with the old corsair ax850 PSU which was installed outside of the case. Upon testing the same issue came back with the wires of the control hub started to over heat when ever the fan RGB connecter was plugged in. No over heating of the wires happened when it was just the 3pin connected.
So I thought 'well this happened on two control hubs, so must be the ax850 PSU....' well I happen to have a second ax850 PSU. So tested the second ax850 PSU and the same over heating/melting of the control hub wires happened again. Different SATA power cables were tested again.
So in summary my testing leads me to believe there is some issue between Corsair ax850 PSU's and the control hub. For reference the serial numbers for both PSU's are (R1112BA1620407 Rev: A1W & R1112BA1620408 Rev: A1W.
So yeah, any other ax850 owners using the control hub successfully?