It's all about trying out.  We did not expect that this igniter would work at first attempt!

After checking through all the movies and in slow motion, it`s now stands clear that the explosion occurred in the LOX hose just below the liquid oxygen tank.

We know that there is a design problem in the igniter body. What happened was that we used mist nozzle design for both the ethanol and the oxygen. These two nozzles sprayed against each other to create a mist of ethanol and oxygen. The problem is that when we open both ethanol and oxygen valves at the same time it will only flow gases oxygen in the beginning before the hose is so cold enough that liquid can flow through it. 
This gives time for the ethanol to enter the oxygen hose, and when the ignition  is then triggered everything detonates at the same time, and that is what`s happening here.

Next generation igniter body will have fuel flowing so that they can`t past each others injectors.

Overall, the control electronics, igniter cap etc works Smoothly!