It shorted out due to improper connections, low quality parts, or faulty components from the factory. I don't believe it to be an issue of lack of standoffs causing a lead to touch a grounded case, as that's a short of minimal/no resistance. Provided that the power supply is built competently, the short circuit protection (SCP) are design to detect these types of short and shut the PSU off.
If it's a short from a faulty VRM of the motherboard or a motor of a fan for example, the resistance of the circuit don't typically trip of the SCP and must rely on other protections to shut it off - protection such as Over Power Protection (OPP) or Over Current Protection (OCP). OCP's detection is quicker than OPP, since it's protection of the secondary side of the PSU (3.3v, 5v, 12v) and has lower trip off rating than OPP (a primary side protection - the larger the PSU, the longer it takes the OPP to detect). Sadly, many single rail PSUs lack OCP on the 12V rail and must rely on OPP (units like the EVGA Supernova 1000w G3), and even it does have it, it may be set too high to protect something from being burnt up (Seasonic Prime Ultra Titanium 1000w has it set around 115A @ 12V which is 1380WDC). What happen is when you have a short, it create a unregulated load. This cause the current of the load to keep on increasing until one of the protection detects it and shut the PSU off or something burns up. The effect the short has can depend on the design of the PSU (this can happen on even quality high-end designs) and its capacity (the higher the wattage - the protection may be set higher).