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I would suggest that the original power supply failed because:
A) It simply gave up the ghost. (one to many mains spikes?)
B) It was of flimsey/poor build and simply couldn't supply the rated power. (Quite common in my experience)
C) The power supply was a few years old and just failed with the extra load.
You are very lucky that nothing else was damaged.
As it's a new power supply, go ahead with the new processor, it's the only way you will know. At least you have been able to test the system beforehand.
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