The insulator is essential to electrically isolate the positive post from the negative return path. You didn't mention whether you were using a mechanical or a regulated device. If it's mechanical then you could get a hard short and your batteries will vent. Secondly burnt plastic will taste vile, and quite possibly leach toxins into your wick,
juice and ultimately your lungs. You may be able to replace the insulator and then scrub out the burnt flavor from the atomizer.
You built and excessively large coil and immolated your atomizer, I suggest you experiment with some more modest
coils for a while.