It sounds like this transformer had its center tap grounded and was the path to ground on one side of a ground loop as the geomagnetic field moved under pressure from a CME, inducing a common-mode current in the long-distance power line. A gas pipeline in an area of poor ground conductivity in Russia was also destroyed, it is said, resulting in 500 deaths.
One can protect against this phenomenon by use of common-mode breakers and perhaps even overheat breakers. The system will not stay up but nor will it be destroyed. This is a high-current rather than high-voltage phenomenon and thus the various methods used to dissipate lightning currents might not be effective.
In March 1989 much of Quebec lost power for the same thing.
They lost power because the common-mode breakers tripped, not because their system was actually damaged.
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