Editor's note: The videos above contain graphic images. Viewer discretion is advised.TAIPEI, Taiwan (CNN) — Hsueh Ming-chuan was lying on an inflatable boat when her mother found her.

"All her skin was gone. Her hands were shaking ... and she kept calling for me," her mother said, according to Taiwan's Central News Agency.

Hsueh, 17, was among nearly 500 people injured when a huge fireball engulfed partygoers Saturday night at a seaside water park outside Taipei, Taiwan's capital.

The sudden burst of flames sent terrified people, most of them in their teens and 20s, running for their lives.

Firefighters say they think the explosion was caused by a colored powder that was sprayed over the crowd — part of the theme of the "Color Play Asia" event. It's still unclear what caused it to ignite, and Taiwan's government has banned events from using colored powder until further notice.

Hospitals in the area are battling to cope with the high number of burn patients from the disaster. Li Pei-yun, a 20-year-old woman who suffered burns to 90 percent of her body, died Monday, said Chung Shan Medical University Hospital.

Others are still clinging to life. Of the 494 people injured, 393 are still in hospitals, and 221 of those hospitalized are in intensive care units, according to public health officials in New Taipei City, the municipality where the water park is situated.

Plastic surgeons working around the clock

The critical cases include Chu Li, who had just turned 18.

"She suffered third-degree burns over 80 percent of her body," her father said, breaking down in tears as he described her injuries, according to CNA.

Related:

More than 500 injured as fire hits Taiwan water park party

A fire on a music stage spread into a crowd of spectators at a Saturday night party at a Taiwan water park, injuring more than 500 people, including eight in critical condition, authorities said Sunday.

Many of the patients inhaled the flammable powder, raising concerns that it could have damaged their respiratory tract and internal organs, Dr. Charles Hou, director of critical care medicine at Mackay Memorial Hospital in Taipei, said Monday.

He told CNN that plastic surgeons have been working around the clock since the accident to remove severely damaged skin from victims. Skin grafts are being reallocated from skin banks at hospitals around Taiwan, the doctor said.

Liu Yeuh-ping of Taipei's Department of Health told CNN on Sunday that while there was ample room for patients in intensive care units, there are not enough spaces in specialized burn units. Health authorities are trying to move patients in need of intensive burn care, the official said.

Eric Chu, the mayor of New Taipei, said the disaster was the "worst incident of mass injury" his city had ever seen.

Event organizer apologizes

Investigators are trying to establish why the powder erupted into flames at the park, Formosa Fun Coast.

"The fire came too fast and nobody was able to run," said Huang Guan-zhang, a 19-year-old witness.

Packets of the colored powder had been given out to partygoers at the event. But a large quantity of it appeared to have been shot out over the crowd as part of the special effects just before the midair explosion.

Two men — the organizer of the party and the person in charge of lighting and hardware — were arrested and released on bail, the Shilin District prosecutor's office said. They haven't been charged yet.

The organizer, Lu Chung-chi, apologized publicly for what happened, getting down onto his knees in front of reporters.

"We shoulder ultimate responsibility," he said, according to CNA.

Questions about the use of the powder

The company that ran the party, Color Play Asia, has held similar events in Taiwan previously. Video on its Facebook page shows jets of colored powder being fired into crowds.

The powder is thought to have been made from cornstarch and coloring.

Color Play Asia says on its website that the powder complies with "relevant standards."

A company that supplied three tons of colored powder to Color Play Asia said there are warnings on the packaging that the material is flammable.

Chou Hui-fang, vice president of Tai Won Food Industrial Co., told CNN on Monday that the packaging says the powder shouldn't be used in closed spaces or under high temperatures. Otherwise, a dust explosion could occur.

Color Play Asia wasn't immediately available for comment on the matter Monday. CNN hasn't been able to confirm whether the powder supplied by Tai Won Food was what Color Play Asia used on Saturday night.

Colored powder is also thrown around liberally during the Indian festival of Holi, as well as at color-themed running events held around the world

CNN's Kathy Novak and K.J. Kwon reported from Taipei, and Jethro Mullen reported and wrote from Hong Kong. CNN's Kimberly Hutcherson, Kevin Wang and Greg Botelho, and journalists Gladys Tse, Wayne Chang and Melissa Chen, contributed to this report.

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