Hot starting issues

My guess is bad connection causing heat. That looks scary. Hope your Battery is disconnected. Hopefully you can cut them back and solder them correctly. There was a thread where someone found a plug that worked out well for a replacement.
From what I can see the wire about the cuts are fine. So I should be able to get in there and solder them up right. Just curious if this is all from just the wire going bad and then been fixed poorly or if I need to be looking for a big problem some where in the circuit.