IIRC the Israelis developed a version of an RPG that can be fired from cover in a room. It has basically a water balloon in the back end of the launch tube. The back blast pushes the water out, then the force/concussion is mostly expended misting/vaporizing and pushing against the mass of water. I remember the guy on the arms TV show firing one from inside a cinderblock room, saying something like, well, this would normally kill me but ... here goes...
I was about to say the same thing. There is a reason you turn around and check your backblast prior to firing.
The projectile didn’t explode, it would have a minimum arming distance of 38 meters or so. The backblast got him as you described.