The MI cable gland should not have been left floating in mid-air (although it wouldn't be the first one that was) with no support and exposed basic insulation. I suspect the solid conductor was too small to be securely clamped in the cutout terminal. It's a known issue with MI cables, which have a very high current carrying capacity for a given size, and therefore sometimes require specific termination methods to make a sound connection in larger terminals of similar rating. I doubt any kind of 'surge' was involved, more likely a steady heating load that slowly overheated the bad connection.