Please help! I'm having a Meltdown!

Yes, likely a mistake. I have to assume that your system is 1971 or later? One field connection is powered by key in "RUN" (blue), the other connection (green) is pulled lot ground in a pulsing way, as necessary to energize the field for regulation. The colors use are from OEM harness, have no idea about EZ colors. The blue also powers ignition, so a fault (no insulator there, and screwing down makes connection to ground), will kill ignition power, melt wire insulation and possibly start a fire, or burn fusible link.

There are better insulators than rubber, things like nylon, phenolic, ceramic.... Sounds like header is too close, or too hot. That brings to question about mount location, or if engine timing is too retarded, resulting in burning fuel too late. That can burn up headers quickly, many do that by not using vacuum advance distributor, and expect engine to properly highway cruise.