In combined fleet it says it was sunk by Tui... it misses the other ship. The other Corvette was called the 'Moa'. They forced it to surface then ran it onto a reef.
I saw a pic, a real nice one of a Japanese sub with aircraft launch, but it was not the 1-17. There is a picture of one somewhere with the caption explaining the sailors were destroying the aircraft before surrender.
Here what is supposed to be the I-17...
http://www5b.biglobe.ne.jp/~pitroad/display/pt/pt18-19.jpg
It's a scale model, hard to see what way the plane launches from there.
Here's a better one....
I-17
Looks Forward Launched.