Could be the angle of the photo, but it appears the arms of the u-bracket have been pinched. The two arms of the bracket should be parallel. The photo seems to show the round rust traces of a spacer or washer on the inner surface of the left bracket arm. My guess is that there should be washers or spacers on either side of the drop link ball joint to center the ball joint and provide clearance for the ball joint from the u-bracket arms.
Is this a Weltmeister sway bar installation or Weltmeister drop link? Maybe someone with a Weltmeister sway bar will comment. Or you could look up Weltmeister sway bars and find a installation diagram to see what parts are used.
I found this on diagram on Paragon Products.
http://www.paragon-products.com/Weltmeiste...b-1000-1100.htm