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YEs. Red is usually always hot from the battery and if it is hitting ground, it will blow a fuse. Insulate it and move it so it does not get crimped (pinched) again and you should be good to go.
It would have to hit ground, which most likely it sounds like would be the frame. It is always safest to wrap the bare wires in electrical tape to insulate them.
Is there anything more I can assist you with on this?