Story highlights A supplier says the powder it sold to the events company carried a warning that it is flammable

A 20-year-old woman has died from her injuries, a hospital says; hundreds are injured

The event organizer and engineer have been arrested and released on bail

Taipei, Taiwan (CNN) Hsueh Ming-chuan was lying on an inflatable boat when her mother found her.

"All her skin was gone. Her hands were shaking ... and she kept calling for me," her mother said, according to Taiwan's Central News Agency.

Hsueh, 17, was among nearly 500 people injured when a huge fireball engulfed partygoers Saturday night at a seaside water park outside Taipei, Taiwan's capital.

The sudden burst of flames sent terrified people, most of them in their teens and 20s, running for their lives.

Firefighters say they think the explosion was caused by a colored powder that was sprayed over the crowd -- part of the theme of the "Color Play Asia" event. It's still unclear what caused it to ignite, and Taiwan's government has banned events from using colored powder until further notice.

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