Aluminum is flammable under high enough oxygen pressure and temperature, especially in the presence of a catalyst like nitrous.
Aluminum powder is used in certain flares and in solid rocket boosters.
There are no signs of "melting" like you would see if you took a torch to aluminum, the material becomes the thin coat of aluminum oxide after it burns and attaches itself to the first cool surface.
Perhaps with a stock turbo you might not get enough pressure to light it, but it will happen if the pressure goes high enough.
Oddly enough, the piston undersides do not show the classical "oil varnish" that you will see on an overheated piston. The heat is apparently localized in the surface of the piston. Perhaps it happens so quick, that there is not time to transfer the heat. You need both heat and time to get something hot.