Short in stator-rectifier connection

I pulled the whole electrical system on my 83 GPz550 yesterday. I'm going through it because the bike won't rev past 5-6,000 rpm and I thought the problem might be in the electronics. The battery voltage is 11.8 when not running, the bike hasn't run recently so I don't have any measurements for running conditions. I found this melted/corroded connection. There are three yellow wires that run from the stator coil to the rectifier. That connection is from one of those wires. I can't get consistent resistance readings that my manual is asking for. I'm going to keep working on this. What are the implications of this apparent short? what could have caused it, what can I do to fix things. Thank you for your help.

It's not a short, it's a bad connection that causes that. Any connector that flows high current needs clean, tight connection. Once corrosion happens or the connector is otherwise damaged a loose connection happens, the connection burns. You can fix it in any number of ways, best being replace both connectors, but normally this is not possible. Other ways to do it are a different, more readilly available connector, or solder and heat shrink tubing.

Yup.
Steve