Sorry to hear about your situation. It could have been any number of reasons for the failure, but let me remind you of our warranty. As stated on our web site at http://www.olyarms.com/warranty.html, these items are specifically NOT covered:
[edited for brevity]
*Damage or malfunction resulting from barrel obstructions.
*Damage or malfunction resulting from the use of other than factory SAAMI spec. ammunition.
*Damage resulting from the use of ANY imported, handloaded, factory re-manufactured, or non-brass cased ammunition.
If your unit was damaged based on any one of these factors, all of which seem to be possible from just the information listed in the post above, than the repair of the upper receiver would not be covered by our warranty. We can still affect repairs to the unit, but it would be a chargeable repair.
Don't get me wrong, I'm not saying that this is the case with your upper. It may very well be a manufacturers defect that caused the problem. That has not been ruled out, that determination will be made by our riflesmith (Steve Houseman) once he has the unit in hands and has accomplished his forensic inspection.
Also, if it deemed to be an ammunition problem that has caused the damage, we may be able to approach the ammunition manufacturer for compensation for the repair as well. This is a common practice between firearms and ammunition manufacturers.
In any case, I'm certain that we can repair the unit and come to an amicable resolution with regards to compensation, should that be required.
Final Note: Do your best to follow the guidelines put forth by the published warranty, thereby allowing us to better serve you. If you need to know anything more with regards to the repair, feel free to contact me directly at 800-228-3471, and we'll work it out.
Tom S.
Oly Arms