Turbine Overhaul Service's aggressive grit blasting and incomplete masking of the blade root neck that allowed the no grit blast area being exposed during the overhaul of the blade resulting in blasting media being embedded in the blade root from which a fatigue crack developed. The fatigue crack propagated until separation of the blade occurred that resulted in a complete loss of engine power. The fire was caused by the B-nut on the hydraulic line from the fuel pump and pulsation damper loosening from engine vibration after the compressor blade separated spraying high pressure fluid into the engine compartment that ignited on the hot engine cases.