How does a fuse react in the case of short circuits?

In the event of a short circuit, a fuse is designed to react by melting and breaking the circuit. This melting occurs because a short circuit causes a sudden surge of electrical current that exceeds the fuse's rated capacity. Fuses are made of a metal wire or strip that has a known melting point; as the current increases due to the short circuit, the heat generated by this excessive current rises to a level that causes the fuse material to melt. When the fuse melts, it interrupts the flow of electricity, preventing further damage to electrical components and reducing the risk of fire or other hazards.

The other options are not correct in the context of how fuses operate. For example, a fuse does not allow continuous flow of current during a short circuit; if it did, it would defeat the purpose of having a safety device like a fuse. Similarly, a fuse does not actively lower voltage or increase resistance -- its primary function is to break the circuit under fault conditions.