Just checked out the problem again. There is spark between the boot and the engine. No clue how this happens. The boot doesn't seem cracked.
Boot damaged?
Felicious, it is my belief that every owner of a CB500 or CB550 (and maybe of SOHC
Fours in general) sooner or later will have this occur. It is very common. That's why I advice always to check (and doublecheck) the ignition before moving to other possible causes. Back then you had aftermarket 10.000km service sets that contained not only sparkplugs, filters but also 4 caps.
Thanks for posting that video. It shows clearly what is happening and why it so often goes unnoticed. I suggest a link in the FAQ.
A routine check should be done regularly, preferably in the dark. BTW I have good experience with these red silicon sparkplugcaps but I confess I never ride in the rain anymore.