I've experienced this randomly as well, usually in the city center near Corpo Plaza I think. I get launched into the air and the game gets stuck in a loop of falling (or launching) then reloading. Quitting out and restarting the game usually fixes it, but of the times I've had it happen I'm sure it's the same spot.
Nope. When I got shot into the air. It took a while for it to land. What with you high it was... upon landing it bounced a few times rather comically and the worst was that it had some dents and stuff. No fire. Just dented up a bit.