I fried a MOSFET once by applying reverse polarity only for a fraction of a second. I accidentally touched the battery backwards for a split second and that was the end of it. It was a 70A MOSFET. Problem is with the batteries used in high power mods, they can deliver several hundred Amps on a short circuit. Two VTC5s in parallel will deliver 600 plus Amps instantaneously on a short.
PTC fuses have a trip time that varies depending on the fuse rating. Typically makers post trip time charts in their data sheets. You notice it does take some time for the fuse to shut down the circuit. That being the case, the MOSFET has to endure the short circuit current until the fuse trips.
Another issue with MOSFETs is they can generate huge amounts of heat when operated in the "active" region. This is the region in between fully off and fully on. So for example, if the MOSFET is dropping one volt because it's not turned on all the way and there is a flow of 20A, that's 20W on the MOSFET which is well past the typical 5W tolerance of the package. If you are using a MOSFET with a high gate source threshold and the fuse drops voltage slowly, then the MOSFET is operating in the active region with short circuit current. That's likely why it's burning out on you.
You didn't post the specs on the fuse, but you will probably have to select an array of smaller PTC fuses with a fast enough trip time to protect the circuit. Additionally, you may also need to use a MOSFET with a lower gate-source threshold that ensures it remains fully on until the fuse trips. If worse comes to worse, you can use a fast-blow single use fuse that will trip very quickly. Has to be the fast-blow type, not the slow-blow type in the glass capsule.