Kobalt Air Hose Reel Malfunction

I bought this air hose reel sometime during this past summer, brought it home and installed it. I used it a number of times to air up a trailer tire that has a slow leak, as well as with my brad nailer, etc. I pulled the hose out a couple weeks ago, and holy cow there was this big bubble in the hose. I wasn't sure how dangerous this is, but I wasn't gonna take any chances of having something blow up in my face.

I held on to the box the reel came in for a month or two, and I guess the receipt was in the box. I finally disposed of it one day when straightening up the shop. I discovered the defect probably within two weeks of throwing the box out. So, I was really concerned that Lowe's wouldn't exchange it, and I would be out the $100 or so that it cost. I knew I could replace just the hose itself, and still use the reel, but I didn't want to do that. So, thankfully Lowe's were good people and gave me no trouble.

I'm still leaving pressure turned on the hose most of the time, but I've turned it down to around 100 psi. Hopefully, this second one will last longer. I'm gonna hold on to the box this time just in case.