Yikes, that is scary. I have read a few stories about USB chargers burning up like this. Was this one UL/CSA/ETL certified? Thanks for your story; hope you and your kids weren't hurt by the defective unit.
Luckily both kids were not injured and were able to unplug the unit before it caused any major damage. Because there were no bodily damage, I didn't push the issue as hard as I could have.