It was the Residual Current Device (that big thing that was burned in one of the holes) that was defect and a mistake on the wiring.
It failed to cut the energy, alongside the two cables shown on the picture being "misconnected" (the two cables were actually on that same burned hole, instead of being separated), according to the electrician. The Residual Current Device, that metal thingy that was also burned which name i don't know and the two wires got replaced. 190 bucks.
Yeah, it did look like it was a piece of shit. Of course, if you strip your wires a bit too much, some of the charge from the wiring will buildup heat and melt the outer casing. However, I don't think it would have melting the casing as quickly had the product been worth a crap...
We had cables in our house, with 240V running through them like all UK live wires do, that were insulated with JUST cloth essentially. We also had a light, with it connected using bell wire, which is low voltage cable designed for door bells. Definitely not lights.
How did your house NOT burn down?