We’ve got shocking new details regarding the potential origins of the apartment fire that sent soul singer and former Prince collaborator Alexander O’Neal to the hospital early Friday morning.

The musician’s wife, Cynthia, tells TMZ … she recalls being woken up to Alexander frantically alerting her about a fire “with his arms in the air,” which is when she noticed “a bubble of fire” in the cord attached to his oxygen machine. He was on oxygen because he had just been released from the ICU hours before, following a nearly 2-week stay.

Cynthia says she noticed a separate fire on the floor that Alexander had tried stomping out with his bare foot and burned himself doing so. That blaze grew to the mattress, and that’s when they decided to leave their residence and call 911.

We told you all about the catastrophe … Cynthia and Alexander — who was tapped as the lead singer of Prince’s band The Time in 1980 before ultimately being let go — were both hospitalized as a result of the violent blaze that sprang up just after 1 AM. Cynthia tells us she was released swiftly, while Alexander was kept longer as tests were run on his lungs.

Cynthia recalls returning to their apartment complex in Burnsville, Minnesota for Alexander’s various medications to see the place totally destroyed and the bottles melted. She tells TMZ … “The whole place is totally demolished. There was nothing left. There was water up to my ankles.”

A rep for the city confirmed to TMZ the fire destroyed 4 units, making them unlivable. The cause of the fire is still under investigation.

Alexander was released from the hospital later on Friday, and they are now both seeking refuge at a family member’s home as they plan their next move. Cindy has stayed positive about the devastating experience, noting … “We are so happy to be alive. We may not have a toothbrush, but we have a car! Our spirits remain good and we are moving forward.”