That ^^^^^ indicates a break (infinite resistance) in the circuit between each tank sending unit and the gauge head. But once again, speculating here, if the selector is physically halfway between front and rear, then the contact that connects either the front or rear sending unit and the gauge head (see terminals 4,5 and 6 on the selector connector) could be in a position where it's not connecting either one. That would mean an open circuit, infinite resistance, and indeed a gauge pegged past full.