hmm almost looks like the nipple end is stuck in there. you will need to push it out, but must be in the least tension gear, so click little lever as you pull on those strands to get there, you should then be able to see the nipple from the other side, and then push the whole lot out.
Ah fossyant - agrees!
I do think this is the issue, the nipple end is being held in because you're in a middle of the range gear, and it wont click back because there is no pull on the cable (usually from the derailler) because the cable has snapped. so you need to create that "pull" on the cable to get the gear lever mechanism back round to its resting spot.