Well that disconnected earth wire doesn't look right.
I don't understand what it's doing there in the first place though, or what it should be connected to because the fitting only has live and neutral terminals. Just the metal frame somehow?
Can you post the reverse angle of the first picture showing how the wires connect? It looks a bit like the live has shorted against the earth but it's hard to tell.
The whole lot needs redoing with a proper junction box.
Well that disconnected earth wire doesn't look right.
I don't understand what it's doing there in the first place though, or what it should be connected to because the fitting only has live and neutral terminals. Just the metal frame somehow?