idle dips when I shift

[S14mc]

Here's what happened. I switched to a buddy club thin battery couple weeks ago. When I drove the car it drove fine, but once in a while it would seem like it would shut down (all rpm needles would drop to zero) but then jolt right back up and resume the curent rpm.

I found out that the positive terminal on the battery was touching the frame right by the headlights. This would cause a spark and then real quickly make the car sorta die for a quick second, then go back to normal.

After this situation had happened, everytime that I shift, the idle would drop all the way down to like 500 or less rpms.

I checked all pipings, couplers and any vacuum leaks from hot to cold side. I also cleaned my iacv with throttle cleaner, checked maf, coils, plugs and everything else I can think of. I do hear some sort of vacuum leakage by the intake manifold, sprayed soapy water, but I couldn't find the source. Is this normal to hear a vac by the intake manifold?

My main question is this: can this be cause because of the battery terminal connecting to the frame and causing my SR to jolt? Would this damage my alternator?