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That spring should attach to a thin, flat piece of metal retained one of the bolts on top of the king-pin plate. It's just to allow the brake line to move when steering, but to keep it away from quickly rubbing through on the tire, getting smashed by the steering stop bolt, or other hazards.

Honestly, to me, that looks like a front inner-axle oil seal leak (which I have found to be much more common), not a blown wheel cylinder. I'd check the fluid level in the master cylinder, but the master cylinder probably is the root failure. Or, if the park brake works, idle it home and use the...