Paul,

I haven't heard anything about this, but the Naval ORs indicates that the USS ARIZONA was destroyed by a fire on board, on the night of February 27, 1865, some 38 miles below New Orleans.

I have an interest in this particular vessel, as one of the officers who had served aboard her, in 1863, and who was captured by CS forces ashore at Pointe Coupee in June of that year, later settled in Australia, and is buried here in the state of Queensland.