Thanks to everyone. Couple of thing that still bother me are the secondary explosions mechanic and the total loss @Cassaralla mentioned. I have tried playing with the SM function to assign points of damage but the results are all over the place.
1. Any ideas on how secondary explosions work? What can cause it (any weapon, mesons, shock damage) what is formula?
2. Any other fun catastrophic failures that can happen?
3. How maintenance failure cause ship to be destroyed?
I was sure I remembered seeing someone explain most of this in a post during the last week or so, but whatever.
Maybe it was, I didn't see it and I appreciate your effort try to explain it even better to silly ol' me
EDIT:
Unless there was misleading info in a authoritative location, it's not applies 1 at a time.
Any chance for a link? Because going by an early tutorial it is applies one at a time, but there is also a different internal armor / HTK formula than the one I am familiar with and mechanics has been known to change many times.