By default, you will have to replace all the internal wirings of your UPS as this will remove the blinking and shortening issue and after having done this then you will have to tune your UPS.
Terminals normally get hot if they are corroded as very less current is being delivered to the batteries resulting in being hot due to a very small contact area or very high current is trying to make its way to batteries with small contact with terminals.
If above issues are checked and problem remains intact then it may be a problem with batteries.
Anyway, you should have an amp-meter and voltmeter with you and should exactly know the settings which supposed to be running on your UPS like cutoff Voltage, charging rate. Then verify those with meters and see if settings are right or not. There are too many variables involved and they are easy. Purpose of this thread is that you should rely less on technicians and more on your skills, instincts and knowledge. It can be anything, try to diagnose it with meters and if you don’t understand then post results as otherwise its difficult to say anything.