My controls froze because fraps crashed. After I hit the wall I tried resetting. My car reset off-track. Then I tried resetting again and it got reset even further away. On my next time the car got reset so far off-track that I instantly got reset again (without me pressing the button).

Watched replay, I saw other guys had a same problem as well in that time, but that was kinda wicked. Legal cheat at least.

I think this might be related a similar issue as well: https://www.lfs.net/forum/thread/87627-Possible-bug-in-new-Westhill-found