Out of curiosity, what were you using as a baton? If it was a piece of wood, then that should never have happened. If, however, you were using steel (a hammer, for instance), then a fracture would indeed be possible.
It looks like -- and this is just a personal observation -- you got a BK-9 with a bad heat treat, which can happen with any steel, from any manufacturer.
As far as fair use, Ethan Becker has stated that he considers batonning to be normal usage of his knives, and he stands behind them. My suggestion would be to tell the manufacturer (Ka-Bar) what has happened, tell them the circumstances, and send your pictures, too. Ka-Bar is an old and reputable manufacturer who has a history of standing behind their products. If, for some reason, you don't get any satisfaction from Ka-Bar (which I can't imagine), I suggest you email Ethan Becker directly. He's said in the past that he wants to know about this kind of thing: I suspect he will make sure that it gets taken care of. Not only does he check in here from time to time, but he's also moderator on this board. You should be able to click his signature to get his email address.