Hydro testing = hydrostatic testing. Mandatory every once in a while for high pressure cylinders, be it paintball air, scuba air, firefighters air, etc. It's the same type of test for all tanks. The tank's filled with water and submitted to pressure to check how much it expands while under extreme pressure and so on. Here's the link
Hydrostatic
If it were to fail it wouldn't go kaboom since it's filled with water and not gas, and if it does, it'd do it inside a very thick chamber, where it doesn't really do much other than start leaking.
If the tank doesn't expand much and doesn't rupture, it passes the test, but all tanks fail eventually. I've had 2 scuba tanks die on me during hydro, so i just rent anywhere i go. Screw buying tanks.