Not sure where it went, it's in the comments somewhere. I found a spelling error and edited it a few minutes ago. Here is my analysis:
This was a top vehicle speed run, not a horsepower run (somewhat uncommon). They were gauging the vehicle's max speed, that's why he was in such a high gear. If you pause the video a few frames before the explosion you can see the sidewall deform and the tire (looks like a Pirelli?) become unbalanced then explode. What happened: as soon as he lifted off the gas the rear suspension and tire were released from compression, centrifugal forces on the tire changed and standard vehicle weight was restored to the front suspension. Because of this the sidewall of the tire was elongated (flexed outward) slightly. It became unbalanced and lost geometry (deformed outside of its allowed operational shape). This tire was not rated for those speeds and could not take the pressure. That broke the sidewall completely. There was no recovery once the sidewall deformed at 150MPH+. This tire probably wasn't new. The tire may have also been underinflated or overinflated (hard to tell from the quality of this video) both of which would cause additional force on the sidewall in this scenario. If the operator had lifted off the gas slowly this probably would not have happened. What's really kinda cool is that the deformed sidewall was facing the camera, not the inner sidewall which we would not have been able to see.