|The smoke is from the canopy motors.|
The left engine has the nozzle fully open, showing that #1 engine was developing no power.
Impressive photos of an accident in Lethbridge, Alberta, Canada. The sequence shows the canopy leaving the scene, the pilot in his rocket-powered seat exiting, the parachute opening sequence, and the separated seat falling away. All of this happened in about two seconds from canopy off to the fireball. The pilot survived ok. (Thanks to Cliff for sending this in)