Cable started burning

I got an old computer I was going to fix to sell it. I got a 350W powersupply and the computer has been lying at the side of my desk for half a year with the power supply outside and all the cables dragged out.

Now I plugged in everything, screwed in a new harddisk (don't know if it works), and was gonna see if it worked, and one of the USB cables started burning (i saw a bit of fire), I plugged out the power cord when I saw that, plugged the usb cable out and tried to start the computer again. My monitor didn't get a connection to the computer.

Do you guys think that the mobo got damaged? I have been playing with the CPU/graphic card for a bit, I pulled out the CPU a few times to check it then put it back. I don't know why the usb cable started burning though.
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  1. Which end of the usb cable started on fire? Was it at the connector end or the end that plugs into the motherboard or in the middle of the wire? If it started in the middle of the wire, maybe the wires got stripped from scraping against something and shorted out. I would just try breadboarding in with just the basics hooked up first (cpu, ram, hdd) first to see if the board still works.
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