
it's a transformer, you can't just go and short out the output of a transformer. you're trying to put 240v on the output of the transformer, so rather than your transformer being a step down transformer, i.e. 240v on the input, say, 170, on the output, your putting 240v on the out (which now becomes the input) and are getting something like 340v on what is now the output!! the lower the setting you have the transformer set to when the stat shorts it out the higher the voltage is on the input terminals, you could be getting over a 1000v on those terminals!!!! very dangerous!!
this isn't whast popping the fuse though, just highlighting how dangerous whats happening is to yourself!
because the output of the transformer m beay only halfway down the length of the coil, or possibly even further, unlike the input which is all the way at the top, you're putting 240v onto only half the resistance, which means a lot more current flows, and your fuse pops.
you can get round this though, with just a bit of rewiring, i'll need to see a diagram of the thermostat wiring to check if you can use that stat though, as you can't use some electronic types, because they need 240v on a certain terminal