mate how u not gone bang the terminal u have marked earth is the opposite side of the solenoid the only connection should b the little lead coming from the starter via the v shaped rubber the 6mm stud is the small [crank] wire the top post is the battery terminal and possibly the alternator main wire to charge the battery yr wiring is dead short to earth bet it all got hot in a hurry the earth goes to one of the gearbox bolts hope this helps