Hey guys, "new" boat owner here and decided to join up here to help expand my boating knowledge (which honestly right now isn't too vast lol). I just purchased a 1990 SeaRay 160 and I am trying to get a few little things fixed on it so I can take her out soon. I was cranking her up yesterday and noticed the starter started lugging (like a dead battery) and noticed that my positive terminal was BRIGHT red and if I bumped the ignition switch on, sometimes sparks would come off. I immediately started tracing wires and looking for a short or something grounding out. I have one main battery positive wire running from the battery to the engine, there was also another wire hooked up by previous owner on there so I decided to trace it, it lead to this thing:
And it looks like the other wire coming off that goes to the fuel fill cap. I'm guessing this wire at the cap is the ground for the cap so basically this guy had the ground wire on the positive terminal. My question is, what is that thing in the pic? Is it just a junction point or is it something else? I have other wiring issues on the boat, none of the gauges/lights/radio/bilge etc have power up at the dash but ignition and the tilt/trim on the controls work. Could this ground possibly have been causing those issues as well (I'm doubting it but new to the marine electrical world)? Any help would be greatly appreciated!

And it looks like the other wire coming off that goes to the fuel fill cap. I'm guessing this wire at the cap is the ground for the cap so basically this guy had the ground wire on the positive terminal. My question is, what is that thing in the pic? Is it just a junction point or is it something else? I have other wiring issues on the boat, none of the gauges/lights/radio/bilge etc have power up at the dash but ignition and the tilt/trim on the controls work. Could this ground possibly have been causing those issues as well (I'm doubting it but new to the marine electrical world)? Any help would be greatly appreciated!