Nothing's gonna "explode", but the rim needs to be replaced, obviously. Worst case scenario the spoke pulls out and could catch on something. It is possible, as has been suggested, to remove the spoke completely, adjust trueness as best as possible, and keep riding it for awhile longer.
BTW, has anyone been working on that wheel? That damage looks like a classic case of overtensioning.
To get back on my 'tensionmeter soapbox' again, this is the reason that tensionmeters are important. You can true up a wheel, pluck the spokes, and think everything is alright, only to discover the hard way that you have too much tension and your rim strokes-out.
Today's spokes are stronger than today's rims. If you don't know your rim's tension limits you can cause just the type of damage that your photo shows by overtensioning.
The same is true of pumping up your tires to their max psi. 160 psi may be within your tire's specs, but it may exceed your rim's specs. And that would be a 'catastrophic failure' waiting to happen.
If you have 2 components (e.g. spokes and rims; stem and steerer; tire and rim) never exceed the max spec. for the weakest component.
Bob