1-2-3-4 Clutch Stays Applied

Shift Solenoid 2 

Shift Solenoid 2 defaults to it's normally-closed state (OFF), and SOL 2 fluid exhausts through the solenoid.

Clutch Select Valve 3 

Solenoid 2 fluid pressure no longer holds the clutch select valve 3 open. When the valve moves back to the closed position, it opens the 1-2-3-4 clutch default fluid circuit, and 1-2-3-4 default fluid is routed to the 1-2-3-4 clutch regulator valve.

1-2-3-4 Clutch Regulator Valve 

With the absence of PCS 1-2-3-4 clutch fluid, due to the default state of the 1-2-3-4 pressure control Solenoid 5, the 1-2-3-4 regulator valve would close from spring force. However, the 1-2-3-4 clutch default fluid enters behind the 1-2-3-4 regulator shuttle valve and keeps the valve in the open position.

1-2-3-4 Clutch 

With the 1-2-3-4 clutch regulator valve still held in the open position, the 1-2-3-4 clutch will stay applied.