Has anyone experienced a problem with a fishman pick up not picking up the high E string properly? The saddle slot seems to be completely level so thats not the problem, but I notice the end of the pick up strip is slightly frayed--the copper wire is slightly parted and you can barely see a wire underneath--at least it looks like a wire. Its the B Band T35 system on a Walden cs500 CE
A couple of things to check.
First often if the saddle is too snug in the slot, even with a level slot, it's not free to vibrate freely and engage the UST.
Second with this sort of UST with a braided wire and this includes my favorite the LR Baggs Element, Anthem, etc. when we install them we drill the treble end of the slot downward at approx. 20 degrees just to have a place to tuck the end of the transducer, the frayed part in your case. Reason being that this sort of transducer often is not as active near the tip as you tightly noticed so we take the tip out of play by drilling a slight pocket under the end of the saddle slot to tuck the useless part of the transducer under. This places the saddle, even for the treble strings, under the active part of the transducer.