Your transformer puts out a lot of heat converting 110V AC to 12V DC, and when PSU's get old they get hotter and hotter due to many reasons the main one is dust gathering restricting airflow, and air flow isn't as effective as the dust acts as insulation. The dust wouldn't have been on fire, there would just be a coil or something in there that had overheated and begun to glow, if there was a fire, you would have known about it.


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