I decided to fix up all of the connection in my guest bedroom...what I found was disturbing. To remind me even more of the dangers of poor wiring...there was a small structure fire half a block north of my house right after I found this!
It all started after an old work box fell into the wall after I took the receptacle out...Had to fix the broken drywall with adhesive...clamp holds it together.
I wondered where the romex went because this room was wired with bx...I found out that the black wire was short, they grounded the romex to a receptacle...no clamp on the bx, means no ground. No clamp on romex.
After taking the box out I found that the insulation was discolored and the box had a big burn mark...explains the extra short wire.
Looks like I need to go in the attic, pull new wire, replace the bx, and put an old work box in.