[NoVa-Corvairs] Why did this happen?

[Daniel Goldberg]

I had my 140 Corsa out all day on Saturday in Pennsylvania.  At night, while heading home, the gen-fan light came on.  I popped the hood and found that the positive wire to the alternator had burned off right at the spade connector, and the rubber insulator and washers were charred.  I went and found a hotel.

The next morning I went to an auto parts store to cobble together a new connection.  After doing so, the gen-fan light remained on.  The parts store manager came out with his testing equipment, and we determined that the alternator was charging and the battery was holding a charge.  

I made it home.

1) why did the wire burn off?

2) why is the gen-fan light still on? (diodes in the alternator fried?)

3) what now?