Sounds like the rear wheel bearing failed possibly from the grease seal failing causing the grease to leave the bearing. DO NOT CONTINUE TO DRIVE the car in this condition. You will likely cause additional component damage due to the extreme heat a failed bearing will produce. Also, it is unsafe. The entire wheel, tire and bearing assemble (hub) could detach from the vehicle while driving causing a crash and life threatening conditions!
Have the bearing and grease seals replaced and the hub and spindle checked for heat related damage. Replace as necessary.
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