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Leaving any exposed bare wiring can lead to short circuit and breaker tripping. Most of the times wires in junction boxes are jammed into the back of the box. This is to allow for a device such as a switch or receptacle to be installed. Leaving exposed wire showing below the wire nut could allow contact with other exposed wires or it could come in contact with the bare ground wire which is also jammed in there. Good workmanship should prevail, only strip as much wire as needed to twist the wires together. Then install the wire nut. The skirt of the wire nut should project down over the insulation of the wire by a quarter of an inch. If it does not use a larger wire nut. This will provide full insulation protection to the wires in the junction box.

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Q: Why should there be no bare wire exposed after a wire nut is used?
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