Massive stars rarely show intrinsic X-ray variability. The only O-stars credited to be intrinsically variable are theta1 Ori C due to effects from magnetic confinement of its wind, and theta2 Ori A suspected of similar activity. Early Chandra observations have shown that the most massive star system in the Orion Trapezium Cluster, theta2 Ori A, shows rapid variability on time scales of hours. We determine X-ray fluxes and find that the star shows very strong variability over the last 5 years. We observed a second large X-ray outburst in November 2004 with the high resolution transmission grating spectrometer on-board Chandra. In the low state X-ray emissivities indicate temperatures well above 25 MK. In the high state we find an extended emissivity distribution with high emissivities in the range from 3 MK to over 100 MK. The outburst event in stellar terms is one of the most powerful ever observed and the most energetic one in the ONC with a lower total energy limit of 1.5x10^37 ergs. The line diagnostics show that under the assumption that the line emitting regions in the low states are as close as within 1 -- 2 stellar radii from the O-stars photosphere, whereas the hard states suggest a distance of 3 -- 5 stellar radii. The two outbursts are very close to the periastron passage of the stars. We argue that the high X-ray states are possibly the result of reconnection events from magnetic interactions of the primary and secondary stars of the spectroscopic binary. Effects from wind collisions seem unlikely for this system. The low state emissivity and R-ratios strengthen the predicament that the X-ray emission is enhanced by magnetic confinement of the primary wind. We also detect Fe fluorescence indicative of the existence of substantial amounts of neutral Fe in the vicinity of the X-ray emission.