This is an iPhone that just gave up. Apparently this phone, owned by a fellow in Rome, overheated and fused two metal leads together, resulting in a fiery mess and a dead iPhone. There’s only one other report of this happening in Sweden.
Tim, the guy who got burninated, thinks it was the fluff in the crevices that did it. I doubt it. It was probably a bent pin that touched the wrong lead. More when he visits the iPhone store today.