Detainees rioted at Campsfield House detention centre in Kidlington because they mistakenly believed that one immigrant had been murdered.
Bob Hughes, a spokesman for the Campaign to Close Campsfield, said the "explosion of anger" on Monday morning was due to a "firm belief" among many inmates that Davis Osagie, originally from Benin in West Africa, had been murdered by prison officers.
An assessment is now being carried out by the Home Office after the centre's CCTV system was broken and part of the 'fabric' of the building was damaged.
Calm has now been restored at the centre and 128 inmates have been been moved to other centres.
Two out of three wings at the centre, which holds 215 detainees, are fully operational.
Mr Hughes, who is in close contact with detainees, said: "Detainees were awakened by his (Osagie's) screams and shouts of 'murder!'.
"When they tried to open their room doors to investigate, they found they had been locked in.
"Some men are said to have kicked their doors down in order to get to Osagie's assistance. "After the immediate panic had subsided, guards unlocked the rooms, assuring inmates that it was all over and there was nothing to worry about.
"Then detainees noticed a lot of blood in the corridor, where Osagie had been taken, assumed the worst, and the trouble started in earnest."
Mr Hughes said some of the detainees from Campsfield have been transferred to Colnbrook, a detention centre near Heathrow Airport.
No-one from GEO, the private security firm running Campsfield, was available for comment.
Vida Bromby-Tavenner, a spokesman for the Home Office, declined to confirm where detainees had been taken.
She added: "All transfers of detainees following the incident have been completed.
"Detainees affected will be transferred to other secure accommodation in the Border and Immigration Agency and Prison Service estates."
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