If the tank wasn't grounding, the gauge would read full, just like it did when the sender was removed, and not grounded. I would agree, it (the float) could be sticking, or the wire harness has a dead spot from corrosion or a break, that reconnected when you removed the sending unit. Have you reinstalled, and tried it again? Move the wires around by hand with the sending unit in the tank to check for a brake in the wire.
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69 GMC K10 ..some restoration required....still..
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