Energetic materials (EMs) are central to construction, space exploration, and defense, but over the past 100 years, their capabilities have improved only minimally as they approach the CHNO energetic ceiling, the maximum energy density possible for EMs based on molecular carbon-hydrogen-nitrogen-oxygen compounds. To breach this ceiling, we experimentally explored redox-frustrated hybrid energetic materials (RFH EMs) in which metal atoms covalently connect a strongly reducing fuel ligand (e.g., tetrazole) to a strong oxidizer (e.g., ClO4). In this Article, we examine the reaction mechanisms involved in the thermal decomposition of an RFH EM, [Mn(Me2TzN)(ClO4]4 (3, Tz = tetrazole). We use quantum-mechanical molecular reaction dynamics simulations to uncover the atomistic reaction mechanisms underlying this decomposition. We discover a novel initiation mechanism involving oxygen atom transfer from perchlorate to manganese, generating energy that promotes the fission of tetrazole into chemically stable species such as diazomethane, diazenes, triazenes, and methyl azides, which further undergo exothermic decomposition to finally form stable N2, H2O, CO, CO2, Mn-based clusters, and additional incompletely combusted products.