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Been having dramas with my tuner seeing VSS data loss, and i've seen it read wrong figures on my data scanner. Ive also seen my ECT read 0 for a second. Could this knicked cable produce these weird readings, or if it did ground out on the PCM would it cause more drastic issues? No fault codes are have been recorded. Not sure if it was actually making contact, but I'm trying to workout if i just have a poor tuner, or this is cause of the gremlins such as low speed stalling, poor fuel economy etc. Thanks.
What pin number is that? Type of car? Year? I can't tell you if it will cause issues on the VSS in particular, but I can say typically those pins 1, or 40, are both grounds. So yeah, might be a problem. On my pinout though, it states they are black/white, and your picture has it as black/brown.
What I would do is simply remove the pin guard underneath (the red part), note the pin position (that matters) remove it by simply tilting it off of the lock (pull out slightly) and push it through. Then I'd just throw some heatshrink on there and put it back in. That would be the pro repair, and look good and protect/seal it well.
For the VSS, you might have a bad ground or a wire grounding out on your trans harness. I had some wires practically get melted together a while back at one of my wire extensions. Found the issue by shooting the wires on that harness checking for continuity with the plug unplugged. You shouldn't get any "beeping" on the multimeter with the plug disconnected. Pretty simple to check, if you've got a pinout for that year/model. I can post that if you with a little more info about your car.
Its an Australian 2004 commodore, but id have to say it would be exactly like your 2004 Pontiac GTO. Its PIN 40, our pinout says its a power ground. Im not entirely sure there is anything wrong with the speed sensor itself as im not losing dash speed, nor temp.
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PCM cable knicked - potential issues 
