This author says the following on his web site: “What is known is that fifteen hours after sending its final message, the Scorpion exploded at 6:44 p.m. and sank in more than 2 miles of water about 400 miles southwest of the Azores.” He says elsewhere that the sub went down in the Atlantic. I think that it was the Panama City newspaper that got it wrong. Imagine that.
Actually, it isn't "known" that Scorpion exploded. A competing theory is that it went below crush depth for some reason and imploded.
Scorpion was located with the help of acoustical data. It would be pretty obvious if there was another sub present and firing on Scorpion. I'm skeptical of this conspiracy theory.