A wire going to one of the insulator terminals has obviously overheated and broke away from the spade terminal. Insulation on the wire has melted back about an inch. It is too hard at this point to tell if the crimp was good on the contact. the contact to the insulator seemed loose but may have been caused by the high temp changing the metal characteristics.
Answer Hello Dave,
This is usually caused by one of the nuts on the terminal block being too loose during the operation of the machine. This causes a point of high resistance. Basically, the hotter the connection gets, the more current it takes for the circuit to carry the current. The more current that flows, the more heat is produced. Heat increases resistance so more current is pulled. This will continue until the wire burns off. To correct your issue you will need to replace the terminal block, the power cord, and splice new ends on the burned wires. As long as the connections are all tight, this issue will not occur again.