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Could definitely be from a poor connection to the terminal, you get a voltage drop as load increases, requires more amps increase to make up for it, heat increases, and then your wires start to melt and the power steering fuse pops.
The way you have the wire connected, it might not be perfectly flush. Make sure you don't have any washers on the connector.
Though surprising that it would melt like that , if its only a 7.5A fuse, then might be something else like a short.
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