Stane was knocked unconscious by the blast, and he with his suit tumble into the generator, causing an explosion that kills him and destroys the armor. S.H.I.E.L.D. agent Phil Coulson who is working with Stark, later covers up Stane's death by explaining he disappeared in a private plane while on vacation.

Is Obadiah Stane dead?

For those of you who still haven't got around to watching a film that came out nearly ten years ago, Obadiah Stane is Tony Stark's father's old business partner and Tony's mentor-turned-enemy, who later became the Iron Monger. He was seemingly killed at the end of the film when he fell into an exploding arc reactor.

Who kills Obadiah Stane?

Stane ended up as a one-movie villain, but it wasn't originally intended that way. By way of a refresher, Iron Man came to a conclusion with Stane and his Iron Monger suit falling into an exploding arc reactor, presumably killing the villain.