Well I was in a cave mining Obsidian, I finished so I went to the surface. Close to the surface I hear some burning sound. I think, "What the hell, where is the fire?" I dig around me, nothing. I keep digging to the surface, I get there, fly up a bit look around and this is what I see:
Also, on top of my house (lucky my house is made of stone)
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Currently waiting for: Killzone 3, Resistance 3, Deus Ex: Human Revolution, Mass Effect 3, Dragon Age II, LittleBigPlanet 2
It's possible (not knowing your exact situation I can't say for sure) that you went further while underground than you had in a given direction, causing a chunk to be generated which contained a lava lake. Then everything gets set on fire and you return to a hellish remnant of the place you once called home, and you know longer know whether you can log out for the night outside your obsidian knowing you aren't truly safe anywhere else.