Further news shows that the phone was likely previously dropped, and the battery did NOT explode.
In fact, the original story says that his phone "still worked". if the battery exploded he would not have finished his phone call.
http://news.cnet.com/8301-17938_105-20025399-1.html
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Kasey C, PC guru since Apple II days
Dig a well before you are thirsty; make friends now!