3-wire sensor = two heater, one signal, sensor body ground to exhaust
4-wire sensor = two heater, one signal, one harness ground (less noise, cleaner signal)
With the two heater wires spliced together pre-sensor, then essentially your heater would never heat up, your ECM would see very weird resistances in that circuit and could through things for a loop. The sensor itself is probably fine, it's how your ECM is reading both the signals that is probably causing havoc. If you can see the splice and you could probably fix it yourself, but pick up a manual and verify what the wires are supposed to go. Make sure you use a weather tight seal, otherwise you will probably end up doing it again.