Arduino nano RP2040 heating up

I have bought an arduino nano rp2040 and everything seemed fine. Tested multiple sensors and motors with it and used some basic code. Somewhere in the process of soldering to a custom PCB or testing something went wrong because after I soldered everything on the PCB it didn't work anymore. After unsoldering it I found out that when pluged in it got really hot to the point that you couldn't even touch it and some digital and analog pins were shorted. The question is if this all sounds like a blown IC or something else.

Yes

From your description, it appears that you have damaged the board.

Shorted diode near power converter.

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