This picture that I just took was the clearest way I can think of explaining it.lol

This picture tells it all.
The black mains lead in the US is ACTIVE.
Your CRO's alligator clip is EARTH.
You have most likely fused a part of the earth system within your CRO, most likely candidate is a PCB trace, perhaps close to the BNC connections given you now see a distorted trace (lack of proper earth when measuring a signal).
With everything off the mains, including the CRO itself, check for continuity from the mains lead's earth to the BNC outer.
Also check the probe is OK with your multimeter.
I think you must have learnt by now to treat the mains with respect.
You do realise that 120VAC is actually root 2 higher peak to peak?
This is getting damn close to the max spec for your CRO's input.
Also standard CRO leads on mains - ummm - I wouldn't do it.