Engine Ground getting Hot

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The 6 gauge wire is too small. The block to battery ground needs to be a 4 gauge or even a 2 gauge wire.

Be sure to clean the place where it bolts to the block with some sandpaper to make a nice clean & shiny spot for the cable lug to bolt down on.
 
Absolutely. You cant have too much ground, so GFI! You want the ground path to at least be equivilant to the power path, and the battery cable is 4 AWG IIRC.

Good luck.