I don't know that this is a safety hazard, but that frame will eventually fail at the site of the bulge, which is a high-stress point on any frame. My first Capo was in a frontal collision (my only bike-to-car incident, which also got me a double fracture of the left clavicle and a concussion). I had the head tube pulled back into alignment at a local shop, which had a fixture for that purpose, and rode it for 5 more years. I was climbing an 8 percent grade when I noticed a crack starting to propagate around the downtube, starting at the bottom. The rupture centered on the bulge site, right behind the end of the butting. I gingerly and gently rode it a mile to my destination, and subsequently 3 miles back home, and promptly retired the frame. A friend who was teaching auto shop and bicycle repair cut it up to demonstrate double-butting.