Burnt Wire

UPDATE:

Today I finally got the short fixed.
It was what I and many of you guys suspected from the start. The ignition switch inside the column was bad and it was shorting out.
Ordering a new one today.
Also, the broken turn signal/hazard switch was broken and also shorting out. That is where the -40 discharge came from.
Once the Ignition switch was out and it was just where the wires connected, it only discharged about -5 maybe -3.
So, I can now move on to getting the carb rebuilt and new spark plug wires made. I will post a video of it running when all of that is finished. Then I can finally get a title for it.

Thank you all so much for helping me figure this out.