There're no B737 flights out of KUL, we're all Airbus now. I'm not sure what happened or if it DID happen but if there are a lot of pax with no oxygen, I'm sure no spin doctors in the world would be good enough to cover it up. The explanation requiring the fewest assumptions is most likely to be correct.
CC was the HR boss and has been with AK since the start but he was asked to leave when he tried to make dealings without the boss' knowledge. Unlike in MAS where the upper know nothing as the middle management make money for themselves and rotting the company dry, it won't and can't happen in AirAsia.
A word to the newbie, AirAsia is AK or AXM. Get the basics right first before you try cooking up rumors you can't handle.