Ouch, That looks like it hurt. Try the procedure Bruce recommended in the previous post. I've made several damascus billits using his methodology - works great (so far I've just been able to chew one up on the mill) but that was my fault.
It appears to me that the steel got too hot before it was hit. I have had it happen to me once (I watch the high heat very close since then). I was using 52100 and 15N20 for the mix. The steel was almost a white hot on the end and that end looked like the pictures of yours. I still have it laying around to remind me.
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