I've got the same tire, with the same problem. Eventually the tube got pinched in the hole and flatted. I replaced the tube and stuck a dollar bill in as a boot. It did the trick, and the new tube did not bulge at all. I didn't want to replace the tire since it was somewhat new, and the wear indicator showed hardly any wear... such a waste... so I left the boot in there and forgot about it. A few weeks later and I get another flat. When I took the tube out, I noticed the dollar bill had been ripped to shreds from flexing so much in the tire, and the tube was starting to poke through again. If you want a more permanent solution, I'd skip the dollar bill.