I agree with your assessment that the electrical connection failed. Looking at your pictures, the attachment method is inadequate; you need a method that will tightly bite into the work and the wire, so that electrolyte can not penetrate the connection, anodize the connection, and ruin your electrical continuity.
I don't know if the anodization on the wire is Type III or not, I'd be inclined to doubt it. Maybe its the remnant of Type III after the high dissolution rate ate most of it away. Type III can be dyed; with considerable difficulty, in dark colors only.
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