Yes cutting allly in water will present a potential KABOOM problem.
So bad that I have been told that the blast lifted the whole ganty off a machine and dumped over on the floor. This was an industrial cutting machine with a much heaver gantry.
Water tables that have the pneumatic (air) assisted water lift actually trap the gas under in the air chamber.
To help prevent this you must raise and lower /purge the gas out before cutting each morning and probably during if cutting ally all day.
Old mate that had his machine blow up was starting up for the first shift of the day and did not purge and clear the gas. That's why it went boom.
My little site on MIG welding http://www.learn-how-to-weld.com/mig-welding/