This is toast isn't it...
#4
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It looks very new and it doesn't look like any external damage/abuse caused it to occur. So.... I would take it back to the dealer who sold it to you and get them to replace it. That's a sign of a manufacturing defect. This shouldn't be a problem with any reputable dealer.
#5
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I got that side tire 'bulge' from hitting a pothoole ona strange angle. Looked to be about the same size as yours on my continentals that are close to needing a replacement anyway. the tire 'bulge' kind of disappeared over a couple week period and it didn't seem to have a negative effect as far as I could tell.
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