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NEVER back up with the overdrive engaged!!!!!!! It causes major damage to the overdrive unit.
It sounds as if the switch on the top of the transmission (that is closed when fourth gear is engaged) is somehow sticking in the ON position.
On a 122 (with the smaller transmission tunnel) you may have to drop the driveshaft and lower the rear of the transmission to gain access. It's been a while since I had my 122, which had a D type overdrive, so I don't remember for sure. You might get lucky and be able to reach it by removing the rubber boot and the shifter stick.
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