SpaceX is working on three projects right now. #1- Falcon Heavy, strapping three Falcon 9s together to make a super awesome rocket. #2- The BFR. All over the news lately, going to be a humongous rocket that does New York to Sydney in under an hour, or take humans to the Moon or Mars.
And #3, they are working on what's being called "Block 5", the supposedly final upgrade to the Falcon 9 rocket, including upgraded Merlin engines. These would make the rockets just that much more powerful, increasing payload sizes on both Falcon 9 and Falcon Heavy launches.
So, this is probably one of those new Merlin engines. And it exploded. Which is going to delay Block 5. Damn.