Yeah it does seem like a grounding issue......if there is anyway you could find a wiring diagram for the bike that will have the answer for you....or at least what wires need to be connected where .......what year is the bike.
If you tell me that ill look for a wiring diagram and have my bro take a look at it .....hes good at wiring
If you tell me that ill look for a wiring diagram and have my bro take a look at it .....hes good at wiring