Shouldn't bulge. Shouldn't crack. Needs warranty replacement (again). But you can't use a torque wrench on the top cap bolt. There is no specified torque for that. It is a very delicate adjustment related to the free turning of the fork on its bearings. It is ll by touch and feel. You may have cracked and bulged the steerer tube by overtightening the top cap. Top cap tightening is not supposed to provide structural support, it is only to temporarily fix everything in place until you can tighten the stem bolts. And as far as safety coming from using a torque wrench, I have had LBS mechanics tell me that the torgue listings are much higher than they normally use. Safe assembly and operation supposedly occurs at much lower torques. I cracked a very lightweight handlebar at the recomended torque. The shop mechanic showed me that the bar would have been secure at half the torque. Go figure.