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.