I just went and took some pictures, maybe these will be of use in diagnosing what's going on, or at least understanding what I'm talking about?
Alright, here we go, I have added arrows to help make it easier to spot what's going on.
First things first: This is from the left side. I have cut open the wiring loom to be able to trace the melted wire, and I traced it back as far as where it joins 2 other ground wires and is spliced into a single wire. From the battery direction, it goes 1 wire > 3 wires. The single wire it sources from isn't melted, nor are the other 2 wires. Bad connection here maybe? I have wrapped the melty wire in electrical tape.
Here's a broad image of what we're talking about.
And a little closer look at that splice, which I should add, is factory. Again, this is on the left side of the bike, this was wrapped in blue electrical tape underneath the wiring loom sheath.
And this is taken from the right side of the bike. This is where the melty wire connects to the frame. It is currently not connected, but it was under the bracket that holds a bunch of the (relays?) electrical components as well as the frame for the coolant overflow bottle. This is the only thing that this wire goes to, it doesn't splice in anywhere else to anything.
Thanks so much for your help!
Edit: Let me know if you want links to the larger, high res images without the arrows. Just resized them so they would post well on the forum.