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Welcome to HuntChat.
When you say the gun was converted, was the bolt and spring changed out, or just a barrel swap?
A proper conversion MUST have a new bolt and recoil spring, both much heavier than the original. The .17HM2 creates MUCH higher bolt thrust than a standard .22LR and if the bolt opens too fast, the inevitable result is a case rupture, exactly as you describe.
As they say in Texas, "Ever Tahm."
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