the pilot ejected and is said to be in serious condition.
i'm wondering if the new plasticized fuel had any part of the malfunction?
Probably. Solids aren't dirt simple as they're made out to be over liquid, especially when it's hybrid, you're counting on the fuel itself to help contain and direct the combustion and thrust. I'll guess that while it looked good on paper, it does not have the same amount of elasticity, tensile strength etc. as the original rubber based fuel grain, and/or it may combust differently, voids or irregularities in the burn down it's core might not be self-averaging, and create a runaway pocket that kept growing.
Also, solid rocket motors are often not cast in a simple hole down the center or a cone, or star shaped void either. Here's an example of the development of one system going back to the 1940's. Not saying it's like anything Spaceship 1 or 2 were using, but it can get pretty complex depending on what you're going for.
http://www.okieboat.com/Booster%20History.htmlAnd that burns through, unevenly, or gets out of whack, CATO.
They said there was an explosion. And the widely scattered debris field is consistent with Spaceship 2 not crashing in one piece.
I'd like to see video.
