The anecdote is true, not fictional. I was there and saw it happen.
Not surprisingly, the preamp and power amp were all solid-state and were stupendously expensive, in the $100,000 range. As we old-timers know, price does not guarantee quality in our business, unfortunately.
DC servo failure is not rare in the high-end solid-state world. It should be, but isn’t. When it happens, the results are very expensive, not to mention the cost of down time.
Looking back, my guess is poor solder technique somewhere in the preamp, or maybe a regulator in the plus or minus supply gave up, yanking the preamp output to 15V or more. Or a DC servo went nuts. Results were the same, a destroyed power amp and loudspeaker. The only unusual thing was a designer (me) seeing the failure in real time, in a domestic setting. You usually see this kind of drama on a test bench, not in the context of an ultra-deluxe system in a home.
Should it have been better designed? Of course! But how is the consumer to know? They assume [higher price = better product].
That’s the real difference between pro gear and audiophile equipment. The pro stuff is reliable, because it has to be.