A good quality 300W supply could just about power that at boot up, BUT if its an average "overrated" cheap jobby then 300W could be as little as 150 real watts, and be totally unsuitable. I wouldnt risk it personally.
Sounds to me like your PSU failed, thats bad luck, but even the best brand PSU's fail sometimes, but normally good PSU's dont take out the rest of the PC when they die .
If you remove the graphics card, and try to power the rest of the PC from the 300W supply, it should powerup spin some fans, and beep to indicate lack of GPU (if you have a PC speaker attached). That in my opinion would be more than enough to confirm that the PSU was broken.
Something similar happened to me. A loud bang on another pc in the house, there's no smell. I've removed the psu and shone a light inside and cant see any damage etc. I've looked around the capacitors on the mobo and cant see no damage. This was an older psu out of warranty(corsair gs600 or something).
They got rave reviews and looked the bees knees, even the case they came in looked good. Mine was pants though, blew up, luckily the best thing about mine was the protection worked and it didn't take any other parts with it
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