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A short circuit basically means the flow of electricity doesn't pass through the appliance as it was intended. It flows straight to neutral or earth instead of passing through the appliance and then back to neutral.
An appliance has a certain resistance. This varies depending on what the appliance is. The resistance of the appliance limits the amount of electrcity which will flow through it.
A short circuit has a low resistance, which means a large current will flow through the circuit. This will blow the fuse protecting the circuit. If the fuse were not there, the wiring would be destroyed, and quite probably catch fire.
Much metalwork in electrical circuits is connected to earth. That is a bit like a neutral wire, but not. (I won't go into the technicallities).
Metalwork is earthed incase a live wire or part were to accidentally touch it. The earth wire allows a large current to flow in the faulty circuit, which blows the fuse and automatically leaves the metalwork safe.
If the metalwork was not earthed, then a short to it would leave all the metalwork live, which could shock or kill someone.