Horn parts help

You should have a wire from the metal ring on the back that goes though the hole right near the loose terminal that's hanging there. The wire may be broke off and crammed down in the hole grounding it out.
I dont see a metal ring there. Just the splines collar that's part of the wheel. Could that be missing. It looks like the splined insert may be grounding on the horn contact at the TS switch. I dont see any wire either, other than the red one coming off the 3 contacts on the front