New PSU caused gpu capacitor to blow possibly?

So a while ago I got a new gpu (Radeon 7600xt) and replaced my 2060, and it caused a decent performance increase. However in one specific game, helldivers 2, my computer would just turn off randomly when playing it. I simply stopped playing the game and didn't have any problems for over a year, until today. My computer turned off and wouldn't turn on again, and through some troubleshooting I made the educated guess it was the power supply. I went and bought a new one, a thermaltake 850 watt PSU, and rewired my PC. As soon as I hit the on button, the gpu began smoking and a little jet of fire shot out near where the pci-e power plugin is. Just wondering if this is a common issue? If so, I'd like to know exactly what caused it. Personally I'm assuming it's a faulty PSU, but I'm not an expert.