If the charging rectifier in the outboard shorted out, the battery would dump into it, melting the wire as MS pointed out. The reversed charger probably wouldn't have caused that.I think it may have been the original rectifier. Don't know what blew the wire in two. I may have hooked my charger up backwards once.
As another small-boat guy (19'), and not having any high-draw loads like starters or big inverters, I've protected our battery with an automotive 40A thermal cut-out in the +ve lead.