Sparkingchip:
Poor cable insulation stripping resulting in the copper conductor being stretched?
Andy B.
MHRestorations:
The form of corrosion you're describing is usually due to DC in my experience, so electrochemical action is a strong contender.
The pitting might suggest previous water ingress (salt water during a storm perhaps?)
The 'rusty' part is telling... rust in contact with the copper, in the presence of salt... would do it
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