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HELP!! INSTALLED NEW ALTERNATOR, HOOKED UP BATTERY....HISS...SMOKE!!! 200 1993

I just put in a remanufactured bosch alternator in my 1993 240 wagon. I took out the old one, used steel wool to clean off the positive and negative cable terminals that hook into the back of the alt. I then used dielectric grease to grease up the terminals on the back of the alternator, and installed the new one. I then hooked up the positive battery cable. Then I went to hook up the negative cable, and it sparked really hard. I went ahead and put the cable on, then I heard a hiss from the alternator followed by smoke from the red positive cable hooked to the back of the alternator. I quickly removed the black negative battery cable, and all was well again.

Please let me know what I am doing wrong. Did I fry the new alternator? Is it the dielectric grease that is burning off? What should I do now. I'm really nervous about hooking the battery back up now. PLEASE HELP!!






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