Having spent a good many years as a submarine sailor I have to admit I've never heard of that particular effect.
On the other hand it is unlikely anyone would be still alive at that point to witness it.
It's alsp unlikely that the Dieseling effect would be publicized. a
My first hearing of the Diesel effect was in the Wiki article on the USS Thresher loss. Diesel ignition occurs in Diesel engines at a compression ratio (Armospheres) of 18-23 to 1.. call it 340 psi. That twenty atmosphere pressure (340 psi) is reached at a depth of 660 feet.
("For every 33 feet (10.06 meters) you go down, the pressure increases by one atmosphere.")
"Naval historian Norman Polmar, in his book, 'Death of the USS Thresher,' estimated that boat's test depth was 800 to 1,000 feet and that its 'collapse depth' was about 1,200 to 1,500 feet." (~670psi)
...If all seams, welds, rivets, glue joints, steel sections, hatch seals.... were perfect.
Bear in mind that pressure within a vessel is more easily contained than when the vessel is opposing pressure from the outside. It collapses easier than it bursts. That's why vacuum cleaner hoses are ribbed for strength.
I know, we've gone over this in the thread on the Titanic sub loss, but I figured it should be here, too. Slightly different presentation.
Terry, 230RN