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Some more back and forth with bilstein. They said the splitting of the alignment tab is a telltale sign of a hard impact. Nothing they can do.
If I did hit something, I'd include it in the post. I don't have some ulterior motive for this. Just posted this thread for my experience with the warranty process, nothing more. I'm still running bilsteins. Car still handles way better than stock. I guess the take-away is that a lifetime warranty does not mean guaranteed longevity and that if your shock leaks its fluid out, don't drive on it or you'll likely void your warranty.
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