I unfortunately couldn't find any specific/solid information on where exactly the wire was attached, only some sources saying other trains passed the faulty points without incident so my assumption is that it wasn't wrapped around the rails (were a train would "cut" it). But I chose not to put random guesswork by myself in the article. If I had to figure it out I'd say it was perhaps wrapped around the sleepers and some part of the tongue, maybe the crossbeam, or it was attached to the mechanism.

Thanks for pointing out the error, I fixed it.