The strategy is "divide and conquer":
Split the line in half (meaning with respect to the number of capacitors half of them on each side of the split. Check each half for the fault.
Split the faulty half line again in half (so you have 2*1/4 of the original line). Check again for the fault.
Continue until the fault is located.
For n capacitors, you will need max. lb(n) splits instead of checking n capacitors (lb = binary logarithm, base 2).