I was looking at different connections in my engine bay (3.4L) and noticed that the wires for the camshaft sensor leading up to the connector clipped to the timing belt cover has frayed wires exposed out of the heat shrink surrounding the two that go to the connector. The frayed strands dont look like they're from the two intact wires, just surrounding them. If this is causing a short, what symptoms could occur in my engine?

 

A short can cause a few things to happen

If there is protection in the circuit it will open Without any major carnage being caused.

Non protected circuit current flows to the power source is depleted or the circuit opens .

This can cause lots of heat which may result in a visit from the local fire department