I'm relatively new to this forum, so first of all, hi there!
Now, here's a really strange issue that many people have, but can't seem to find a solution. I'm looking to find a solution once and for all.
I have a Model 2 PAL Saturn from Spain. It has a Phantom Universal Modchip and a 60hz mod. About a month ago my Saturn's PSU suddenly died. Turns out it was the AC/DC transformer (that yellow and black block in the board), can't fix it. Replacements are hard to come by where I live, so that's out of reach for the time being.
I decided to go the DIY route and buy a custom PSU from a nearby electronics store. Because my Saturn is one of the later models, the original PSU required only a 5V rail (console) and a 9V one (forcing 4:3 aspect ratio on SCART output) but it turns out I can go without the latter, so I just needed 5V.
I made sure there was no voltage drop. I double and triple checked everything, and it seemed to be working just fine.
On a side note: I decided to add another fancy mod and use the original PSU board (just the board, taking out all components) as a mere passthrough, so that I can still plug a connector. (Since the connector now receives DC, it can only be plugged one way, so I took the time to alter the shape of the connector just enough so that it can't be plugged in reverse too)
Once it was all hooked up, I was delighted to see my console power up again. But things only went downhill from there.
The console seemed to freeze at the boot animation or on the menu every single time I powered up the console. But the disc motor kept responding. (That means I can stop the disc and get it to spin again while the console is frozen). If there's no disc in, I can reach the menu, but as soon as you insert one, bam. Frozen. Doesn't matter if it's an audio disc, CD-R game or original game.
Things I've tried:
-Adjusting laser pot. Anywhere from around 400 to 800 ohms
-Changing CR2032 battery. Even tested without one
-Bypass Power button and fuse
-Reseat all components
-Thoroughly clean the laser
-EDIT: Tested without modchip
Things I haven't tried yet:
-Disassemble the whole unit and look for main board issues.
-Solder 5V rail directly onto the console's pin header instead of passing through the original board.
Here's a photo of my current setup:

And here's a couple videos:
https://www.youtube.com/watch?v=RNSXsAIFnkg
https://www.youtube.com/watch?v=-l9werGQiQs
So, is this fixable? Can anyone guide me through what could possibly cause this?
Thanks in advance!