gt;
As can be seen below, Cigar Lighter on a 122 is directly connected with an unspecified gauge wire (but which looks like an 18ga, so that's what I have included in the diagram) to the Ignition Power Terminal 54 of the Ignition Switch, which is connected to the Terminal 30 (when Ignition is switched ON), and which is directly connected (with the
second heaviest gauge wire found in the car) to the Solenoid Term 30, and that is connected directly to the Battery with the
heaviest wire in the entire car. So in the case of a short, this connection path can deliver a LOT of current!...hence the smoke show!
Luckily, the small gauge wire supplying the Lighter is the weakest link, and itself acted like a fuse...but not before turning the insulation into an acrid smoke, and getting I expect, your full attention(!)...you can expect damage to be limited to that wire, but your poor Ignition Switch was passing that current!...not so good...!
Generally, I highly recommend if anyone is going to use their vintage Cig Lighter...or even a more modern replacement power socket, which is likely china's (not-so) best, for any purpose, from it's original, to merely supplying power to your phone/GPS, to add an inline fuseholder of whatever type you can easily procure, and install a fuse rated appropriate to the expected load which will be operated...this means 20A for Cig Lighter, 3A for a phone/GPS. I'm not a fan of components dangling beneath the Dashboard, but it's better to simply blow a fuse, and loose function of the GPS then ruining what would have otherwise been a pleasant drive...
In your case, gt, you'll want to replace the damaged wire at the same time! I suggest you do this work with the Battery disconnected to prevent further unplanned exitement!
Cheers