Wire questions

[Kilo]

New to the forums! And new to classic cars. Picked up this gen for a great price. Motors runs pretty good. I was driving it the other day and got some smoke from under the hood. Pulled over noticed the wire coming from the ignition was very hot and melting the plastic coating. Also notice a loose wire that I don't know where it goes. Now car sputters at 15-30mph. Any help would be greatly appreciated.

[Andre]

Battery cables hooked up correctly? ( positive ground) Loose wire may be to carb / auto choke