A method is provided for reducing an impact of an unbalanced short circuit event that occurs in a polyphase permanent magnet generator of a wind turbine. According to the method, an unbalanced short circuit event is detected in the generator of the wind turbine, and, in response to detecting the unbalanced short circuit event, at least one phase of the generator is shorted at a switch-point between the generator and a converter of the wind turbine to create a balanced short circuit in the generator. By doing so, the torque response of the generator is altered to avoid high amplitude torque oscillations that would otherwise occur as a result of the unbalanced short circuit event.