Seconding the previous posts. A resistive connection generates heat at the point of whatever conductivity there is, sometimes to the point of actually making an arc. The telltale in your case is that there is very localized melting/charring, not the whole fuse holder and wire. This is a well enough known phenomenon that the National Electric Code now requires Arc Fault detecting circuit breakers in new homes - at present only in bedrooms.
It's easy to demonstrate the phenomenon with house current. (Not suggesting you DO this! It's dangerous!) Rig up a 100 watt incandescent bulb with one of the wires cut in two. Touch the cut ends together and it completes the circuit, lighting the bulb. Brush the cut ends together lightly, and you'll strike an arc, just like an arc welder. You know how hot that is! But, since the current is passing through the bulb, it never exceeds about 1 Amp, and so never trips a conventional 15 or 20 Amp breaker. An Arc Fault breaker detects the high frequency fluctuations due to the arc and shuts it off.
Just replace the fuse holder and fuse, and this time put a little dielectric grease on the connectors--even WD40. It might get wet. :hehehe