1: if you are melting the insulation off your cables, they are not big enough. 2: assuming you are talking about an Idealarc 250, the duty cycle should hit 100% somewhere around 90 amps. Lincoln doesn’t publish very good duty cycle rating.
Also keep in mind the amperage on the pointer is just a guess. You arc length makes a huge difference in the amount of amps you are pulling.
The only welder I have is an engine drive. One of the thing I love about it is 300 amps at 100% duty cycle. You will overheat before the welder does. 50 ft of 2/0 cable. Never have an issue with the cables getting hot.
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