Tire wear, what's causing this! ? ?

Alright guys get her all put together! Some one tell me if my brand new driver side shock just shot the ****.....

So it's been sitting on jacks for some time now through out this project I put the wheel back on dropped her down softly and ! Wouldn't you know it shock starts spewing all its innards out. Let's out a few oz. of hydraulic oil.

What happened!? Was it me was it a faulty shock? Can I return it ? Warranty? Help