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What you've described is the most likely issue for the problem described. It's also possible that the wires used for the circuit were too small and too long, making it impossible to draw enough current to trip the breaker, even with a dead short at the end of the line. If a short forms in that case, all of the energy is dissipated in the resistance of the wires, resulting in them getting quite hot and, likely, a fire. In such case, even if there's not a fire, the entire wire run should be replaced, as there's likely damage throughout.
– Makyen
Commented Jul 4 at 22:15
1

@Makyen the question specifically mentions the insulation melting at the breaker connection, as well as sparking (so, arcs.) Both of which suggest a loose connection, rather than the entire wire overheating.
– Ecnerwal
Commented Jul 4 at 22:19
2

Yes ... Did you read the first sentence which I wrote? I'm not trying to be facetious. I'm just a bit confused as to what you're looking for as a response. I've literally already agreed with you that you've described the most probable issue. But, there are other possibilities, even if substantially less probable. What I'd point out is that the OP sounds quite inexperienced. I'd be uncomfortable, given the described damage, not strongly suggesting to them that they have someone local who is more experienced take a look at what's physically there.
– Makyen
Commented Jul 5 at 3:45

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