Big 3 Fuse Holder melting

srt4100
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Hi, I just checked under my hood to see how much wire I need to buy for my new amp and i checked the wire from the alt to the battery, and my knukonceptz fuse older is melting where the alt wire meets the holder. The wire from the battery to the holder is fine. I have the holder by the fuse box and avoided the areas where it gets more hot. Can anyone tell me whats going on? I have a 130a alternator and the fuse I have is 150a.

 
1/0 gauge wire. Yea the connection is tight, I checked it. The wire from batt to fuse is probably a foot or maybe a bit more and from the alt to fuse is less than a foot. Dont know if this would affect anything. The fuse holder is by the fuse box.

 
After looking again, I removed the plastic housing around it which brittles away and the wire is stiff stiff and has a charred look.

 
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