The cornstarch powder had been sprayed over the crowd of hundreds of partygoers at the Formosa Fun Coast water park.
It exploded when it came into contact with the lights, whose surface temperatures reached more than 400 degrees Celsius, the Liberty Times reported, citing a fire department investigation.
Eleven people were killed and hundreds were hospitalised, some with third-degree burns covering more than 90 percent of their bodies.
"We will use this report as a reference," Shihlin district prosecutors' office spokeswoman Su Pei-yu told AFP. "We can't reveal details at the moment as the investigation is still underway."
The event, which drew around 1,000 people -- mostly between 18 and 25 years old -- turned into a nightmare when the inferno ripped through the crowd. Horrific video footage showed people running for their lives and screaming as they tried to escape.
Two months on, 42 of the victims are still in critical condition, according to the Ministry of Health and Welfare.
Three suspects have been released on bail as prosecutors investigate them on charges of offences against public safety and negligence causing deaths.
Six more are being investigated, prosecutors said, including both the chairman and the president of the water park.
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