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It appears to show that you have the cattery cable and starter cable on the same terminal.-------Put starter cable on other side of solenoid I would say.
So I just put the negative onto the starter and exactly the same thing happened when I connected the battery, tried to start the motor, the key is even out
Here is how the cables are attached on my 75hp Chrysler. The battery cable is connected on the left side of the solenoid, the starter positive cable is connected on the right.