I had a cheap PSU (an "Allied", I think) in my PII (Pentium II) rig, and it blew out. Turns out, I had replaced the fan on it, and run the fan wire (molex) outside the PSU, and FORGOT TO PLUG IT BACK IN after I worked on the PC.
Needless to say, the capacitors exploded nicely, due to overtemp. Was a bit messy inside.
Thankfully, no damage to components (Thank God!), but it was a shock and a warning to me.
I always use a PSU with a working fan these days. Cooling a PSU is important.
I would replace the PSU outright, OP, with a QUALITY one.