Disclaimer: I'm not a 3dprinter guy. I want to be, but I never found the time beyond a partially assembled prusa mendel i3.
....however, I have done an extensive amount of wiring, in various environments, a lot of it on moving parts, and what I can say is that wires of these gauges don't break like this just from movement along that cable chain (or whatever it's called), unless it's incredibly cold environment and/or incredibly cheap wiring.
I'm thinking that you're most likely correct in that it has been pinched.