After closer inspection it is the cable that attaches to the cam (single cam). I am shooting a Cabela's Outfitter PL series bow made by PSE, I was told this is a typical wear pattern seen on single cams. Funny you should say that about a Matthews, one of the guys I shoot with has a brand new Matthews and he had the same problem you are referring to. He took his bow back to the shop and they replaced the string. I think I am going to be looking for a new bow, the guy at the shop fixed my cable by adding some serving wraps to it to compress where it started to seperate. He also told me that one of the problems is the bow has been maxed out on draw length and that is what is causing such a sharp angle on the cam to cause that seperation. It seems they took a 28" draw length and tried to stretch it to as close to 29" as possible.