That is terrible, I have had one experience with a compressor similar to yours. It was a 35 gal. Vertical homemade commpressor out of an old water tank, twin cylinder, it had a punt in the bottom of the tank which made emptying ALL the water out impossible, I sold it to my sister & we built her 24'x 30' garage with it , ran like hell all the time!
It sat in the corner of her garage & when it blew it went straight up (as it was the bottom that failed) & broke through (2) 2x12's and buckled the roof , it know one corner wall out 6" & the other corner wall 4" moved , the wall in door was sprung & catches to this day , all windows were blown out and gallon a rusty water embedded in his fairly new Dodge truck that was parked nearby.
The insurance adjuster stated that this tragedy was usually caused by never draining the condensate/water regularly from the tank.
Compressed air storage tank's typical failure mode is due to internal rust along the inside bottom surfaces of the tank, where water collects that is caused because of condensation forming unseen inside the tank. Not uncommon for such a failure to produce a powerful rocket effect, turning the tank, usually with the compressor attached, to become one very dangerous projectile.