This chip looks similar to
http://pdf1.alldatasheet.com/datasheet-pdf/view/443798/WINBOND/W25Q20BWUXIP.html (refer to the pinout on page 6 of that PDF). If so then pin 8 is "VCC" which is probably something like 1.8V; it's power to the chip. Pin 1 is "/CS" which is a Chip Select signal. It's useful when there are multiple chips on the same data bus. The bus controller will assert (bring low to GND (pin 4)) the /CS pin of the chip it wants to talk to and the other chips will ignore the data on the bus unless their /CS pin is asserted. So theoretically tying that pin to pin 8 will permanently de-assert it so it will ignore everything.
However, since you tried shorting pins 1&8 and the shorting wire got hot, it's likely that pin 1 is permanently tied to GND on the PCB (permanently asserting the /CS pin, so the chip will always be listening/responding to data on the bus, which is useful if that's the only chip on the bus). If that's the case you may have to desolder pin 1 and carefully (without breaking it off) bend it up before shorting it to pin 8.
However, if you look at the image I've annotated, it looks like there's a jumper resistor which is directly below pin 1 (Labeled "B" in the image. Looks like the PCB silkscreen refers to it as "R19") which has a tiny PCB trace ("A" in the image) leading right to pin 1. It's possible that that resistor is acting as a short between pin 1 and GND. You could try desoldering that resistor instead of pin 1, as it's probably safer than trying to bend a pin up without breaking it off. Jumper resistors are just about the cheapest electronic part you can buy if you end up destroying the resistor and needing a replacement. If you have a multimeter you should verify that pin 1 is indeed connected to that resistor and that that resistor is indeed a jumper (0 ohms, a dead short). If it's not a jumper (has a higher resistance than 0) then it may be a pull-up/down which means there may be another signal controlling that pin which you don't want to short because it might fry the circuit driving it.
Good luck!
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