The fan blades are to be contained as they are susceptible to damage by bird strikes or large hailstone ingestion.
Anything farther back has both a large amount of energy and a high strength and the frequent result of loss of a compressor or turbine blade is enough imbalance that sheds more blades or causes the disk they are attached to to leave.
Fire suppression works outside the engine casing, but this fire appears to be belching out from the engine core, which is designed to contain fire and isn't normally reachable by fire suppression. There may have been no fire indication if the fire remained in the engine core.
The reported size of the hole is about what a compressor or turbine blade would make. The imbalance can shake into contact parts that should not contact. That may be what was causing the showers of sparks.