At the positive end of the battery, there is a thin insulator under the wrap.
That is there to prevent short circuits.
Even though only the centre of each end of the battery is where contact should be made - positive at one end and negative at the other, the WHOLE outer surface of the battery is negative - the base, all the way up the sides, and the top edge. That is what the wrap is there for, to insulate that whole surface.
Up at the positive end the central raised terminal is positive, whilst the edge of the battery is negative, and the only protection there is the little insulating disc with the hole in the middle, which is held on by the battery wrap.
If that insulator is damaged, then as you slide the battery into your mod the positive connector in the mod can end up touching the negative edge and the positive terminal on the battery at the same time.
If that happens, you are hard shorting the battery which damages it internally, causing it to heat up, vent, and possibly explode.
If the mod has a sharp edge on its battery connector that might cause this.
You need to stop this from happening, as it is an accident waiting to happen.