I haven't any idea what caused this to happen in the first place.
This was in an apartment that was (yes, Adam) about 30 yrs old. The customer had complained to management of "flickering lights" for about a week previously. (And of course, THIS is what it took before they called an electrician.)
The aluminum feeder's terminations were still sound, the damage was restricted to what is shown.
I believe that this started as a line to line problem, although I can't guess what caused the arc to start in the first place.

Any ideas?