Yes, but from a theft point of damage if the initial problem had not been repaired or repaired incorrectly it would fry the diodes again. Saw the same thing happen on an old RI. Since you are confident it was not stolen recovered, the only thing I could suggest is to check the loom where it rubs the frame coming out by the frame cross member under the tank and going into the plastic shroud which covers the connector blocks. Check from the connector block up to the left handle bar and the ignition switch.Check the cable from the ignition at the base of the ignition switch as there is a cable tie there which is often pulled tight enough to damage the wires.
You did well to figure out that problem! Have you got any pics of the inside of the cut out relay? Would be interesting to see what it looks like.