The verdict is in, and as most had guessed the verdict is that the cause of the catastrophic failure was from an ammo defect. At this point I'm just glad that the lower is salvageable. Other than having the bulge fixed and finding a new complete upper, I'm not sure what my next move is. I have had some tell me that I should go after the ammo manufacturer. While I haven't ruled it out, I know that the cost of the repairs aren't worth the hassle. Still some point to the fact that I could have been injured and they say that I have a responsibility to others who might be injured due to bad ammo from this manufacturer (Prvi Partizan). I just need to think this through and decide if I agree with that or not. Anyway, here is the official (mildly redacted) Colt Manufacturing Engineering Exam Report.