Seems like you might have a big rust problem inside that stay and maybe other tubes on that frame.,,,
That seatstay is shot......
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72 Line Seeker
83 Davidson Signature
84 Peugeot PSV
84 Peugeot PY10FC
84 Gitane Tour de France.
85 Vitus Plus Carbone 7
86 ALAN Record Carbonio
86 Medici Aerodynamic (Project)
88 Pinarello Montello
89 Bottecchia Professional Chorus SL
95 Trek 5500 OCLV (Project)