So, that's a green label Corsair CX unit, which means it's an older, lower quality unit that came with pretty inferior caps. Those tend to not last long when paired with high gaming cards or high demand systems even when the high demand is within the capacity requirements.
I can't say it's YOUR problem, but if that is the only unit you are relying on I'd definitely start looking for a replacement because you're going to need one if you've been using that unit more than two years.
OP changed again, to reflect PSU not CPU, which I had changed it to. Should be good now.
So, in regard to the original post, yes, a power supply that fails and sparks or lets out magic smoke can ABSOLUTELY cause damage, not just "cause damage to anything" but more like it can "cause damage to EVERYTHING". The fact that it didn't after failing spectacularly is good news but it's still likely to have potentially damaged something.
Chances are good that it could possibly have damaged the motherboard or the graphics card, which is why we ALWAYS say that using a cheap power supply is not safe, and NEVER saves you money in the long run.
The first thing I'd probably try would be these items.
If there are any steps listed here that you have not already done, it would be advisable to do so if for no other reason than to be able to say you've already done it and eliminate that possibility.
First,
make sure your motherboard has the MOST recent BIOS version installed. If it does not, then update. This solves a high number of issues even in cases where the release that is newer than yours makes no mention of improving graphics card or other hardware compatibility. They do not list every change they have made when they post a new BIOS release.
Second,
go to the product page for your motherboard on the manufacturer website. Download and install the latest driver versions for the chipset, storage controllers, audio and network adapters. Do not skip installing a newer driver just because you think it is not relevant to the problem you are having. The drivers for one device can often affect ALL other devices and a questionable driver release can cause instability in the OS itself. They don't release new drivers just for fun. If there is a new driver release for a component, there is a good reason for it. The same goes for BIOS updates.
IF you have other hardware installed or attached to the system that are not a part of the systems covered by the motherboard drivers, then go to the support page for THAT component and check to see if there are newer drivers available for that as well. If there are, install them.
Third,
Make sure your memory is running at the correct advertised speed in the BIOS. This may require that you set the memory to run at the XMP profile settings. Also, make sure you have the memory installed in the correct slots and that they are running in dual channel which you can check by installing CPU-Z and checking the Memory tab. For all modern motherboards that are dual channel memory architectures, from the last ten years at least, if you have two sticks installed they should be in the A2 (Called DDR4_1 on some boards) or B2 (Called DDR4_2 on some boards) which are ALWAYS the SECOND and FOURTH slots over from the CPU socket, counting TOWARDS the edge of the motherboard EXCEPT on boards that only have two memory slots total. In that case, if you have two modules it's not rocket science, but if you have only one, then install it in the A1 or DDR4_1 slot.
The last thing we want to look at,
for now anyhow, is the graphics card drivers. Regardless of whether you "already installed the newest drivers" for your graphics card or not, it is OFTEN a good idea to do a CLEAN install of the graphics card drivers. Just installing over the old drivers OR trying to use what Nvidia and AMD consider a clean install is not good enough and does not usually give the same result as using the Display Driver Uninstaller utility. This has a very high success rate and is always worth a shot.
If you have had both Nvidia and AMD cards installed at any point on that operating system then you will want to run the DDU twice. Once for the old card drivers (ie, Nvidia or AMD) and again for the currently installed graphics card drivers (ie, AMD or Nvidia). So if you had an Nvidia card at some point in the past, run it first for Nvidia and then after that is complete, run it again for AMD if you currently have an AMD card installed.
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