Trust me, HKS will be getting pictures of what I had to do to the hanger. The picture I took was too high a resolution so I can't post it up.
I will be taking my midpipe out once more to put a dent in it, it seems that it is hitting one of the mounting bolts for the diff.

After unpacking this exhaust and inspecting the welds and craftsmanship I was disappointed. Mig welds could have been better, I ground down the inside of the tubes by the flange where the weld came through. The flanges are not stainless, mid pipe hanger is not designed right, and also rubs against a diff mounting bolt.
You shouldn't have to modify or fix an exhaust that costs this much.

The design and the sound are beautiful and amazing. I wouldn't return it because of these problems.

 

You were right with your first guess, it is a ground strap. Not a safety strap. Braided ground straps are usually put in to filter out high frequency electrical noise.

I give props to HKS going as far as welding in a tab and providing proper (over kill) hardware specifically for this ground strap.