Nuclear reactors can fail in a variety of ways. Should the instability of the nuclear material generate unexpected behavior, it may result in an uncontrolled power excursion. Normally, the cooling system in a reactor is designed to be able to handle the excess heat this causes; however, should the reactor also experience a loss-of-coolant accident, then the fuel may melt or cause the vessel it is contained in to overheat and melt. This event is called a nuclear meltdown.
http://en.wikipedia.org/wiki/Nuclear_safety#Failure_modes_of_nuclear_power_plants
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