I had the same thing happen with my steeda adj. cable would get hard to shift so i would adj under car it would last a day then go bad, finally i took it out and looked similiar to yours. So i ordered a non adj oem style cable from 50resto 39.99 then i had to change my 1 hook quad. to a 3 hook cause my cable was to short i then used the middle hook combined with a bbk firewall adj NOW I NEVER FELT A BETTER CLUTCH EVER WITH ANY MUSTANG I EVER OWNED!!............what happens is when u adj the cable the weakest link gave out the cable housing, the cable i bought from 50resto has like a metal nut molded into the end of the housing keeps the housing from busting.