There are a few things that can be wrong, and based on what you said, you probably now have more than one fault. You need to isolate parts to find out what it is. Most of the of these checks can be done almost instantly without removing anything. The chain will get in the way - you won't need to remove it though.
SOURCE: on the tony hawk sypher
That is a brake cable.
The bike is equipped with a device to allow the bars to be spun around 360 degrees without binding the brake cables. If the brake cable did not go through the center then when you turned to far to the right or left the cable would get hung up and bind.
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