Electrical cord wrapped in a circle cause problems?

I've melted a few extension cords by not fully un-coiling them in the south Texas heat. Usually laying on the driveway on an August day. Set one on fire.

As power goes through the cord, the cord heats. If the cord is spooled, the heat cannot dissipate as easily as if its free range.

Its also why we don't run extension cords under the carpeting.