Karar Nushi was found dead on the streets of Baghdad with multiple stab wounds and other signs of torture.
Explosion was followed by a car bombing in the Iraqi capital that killed at least nine people.
24 are thought wounded in the midnight attack.
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Islamic State sleeper cells in east Mosul mark the start of a new insurgency.
At least 48 have been killed in a car bomb blast near car dealerships.
Thousands were in Baghdad's Tahrir Square after cleric Moqtada al-Sadr called for a protest.
Iraqi soldiers in eastern Mosul have celebrated victory by pausing for selfies with Daesh corpses.
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Attack comes two days after dozens were killed in twin suicide bombings in Shia areas of Baghdad.
54 others have also been injured in the attack at a busy market in central Al Sinak neighbourhood.
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Most of those who supported Islamic State in northern Iraq have fled or been arrested.
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The troops are about 3km away as they advance under heavy fire.
As the assault on the city has begun, convoys of Iraqi, Kurdish and US forces moved east of Mosul.
The lunchtime attack in the Shaab neighbourhood wounded at least 60 more.
Isis has claimed the blast in Baghdad al-Jadida in an online statement.
At least 34 others injured in attack.
The Islamic State claimed the attack through its propaganda outlet Amaq.
Rockets which launched from the weapons cache hit eight separate locations in Baghdad.