actually ive heard from my sources its because some of the xbox cables were actually made by Cannon for some odd reason and thoese cables sometimes just didnt come out of the mold correctly and dont quite fit in the connector firmly. You could easily arc a very small bit and make something pop.
Also, the chances of something happening are very very low, but apperntly Mircosoft is having to pay out for a scar on some chicks hand due to this.
(atm this is unconfirmed, but I trust my souce)