Found this when messing with the kitchen lights

https://imgur.com/a/problem-OdgA9bu

I wasn't noticing a problem at the moment, but I remembered there being issues with that fixture in the past. I just put it back but tried to keep the wires away from any sharp edges. What I'd like to know is how would an intermittent connection from neutral to ground cause the problems I might've been seeing? I just know there would've been much bigger problem had it been a black wire that was nicked.

I guess the fixture should be replaced, but it hasn't been a hazard so far. Maybe I could've at least wrapped some electrical tape around it, but I didn't think about it, and I don't know if we have any on hand.