It could be lots of things. Plastic cable guards or torque arrestors could have come loose. If the wire wasn’t coming up exactly with the pipe, the wire could be folded over and wedged beside the pump. It could also be collapsed or broken casing.
Try pulling up while using a pipe wrench to turn it to the right, not the left. Sometimes that will roll it out of broken casing.
Without dropping in a camera to see what is going on, we are just guessing.
These are the kind of jobs where a professional can really earn their paycheck.