Corrected entry: Indiana's boat was destroyed by a giant propeller. However, no boat in history has a propeller that is only half submerged in water and the other half in the air.
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Correction: Actually, there are a number of legitimate reasons why a ship's propeller may be only partly submerged. Several types of heavy-load ships have their propellers exposed when they carry neither load nor ballast. Almost every type of nuclear submarine has part of its propellers clear of the water when its ballast tanks are blown dry. Since the ship was moored and the propeller turning rather slowly, it was probably supposed to be deballasted for yard repairs and undergoing an engine test.
Doc ★