In a breadboard such as yours, each horizontal row (of 5 holes) are connected together. So, row 1, a-e are connected together, and f-j are connected together. Same for row 2, and all the remaining rows.
So, when placing components, you have to connect the leads to different rows, or across the middle, otherwise their leads will be shorted together. In your top pic, both leads of the LED are in the same row so the LED is shorted out. The resistor isn't shorted because it bridges the middle. So, essentially you have the battery connected to the resistor but the LED is bypassed by the lower resistance track in the breadboard (it has nothing to do with the resistance of the green wire).
In the bottom pic, you put the LED leads into different rows so they aren't shorted anymore, and the LED works.