The leak may have occurred about 26 seconds into the flight after a Twitter user shared a screenshot of flames around one of the Raptor engines.
Mr Musk has not confirmed this but SpaceX fans will be glad to learn the issue “is getting fixed ways to Sunday” before the launch of the Starship SN15.
Starship SN15 or Serial Number 15 will be the next iteration to launch after SpaceX scrapped the SN12, SN13 and SN14 models.
Mr Musk believes the SN15 will mark a considerable technological leap over its predecessors, eliminating the need for the three scrapped rockets.
Starship is being developed at an unprecedented pace as the rocket that could one day fly humans to Mars.