It is likely that Cold Steel will replace this blade...well, that would be my guess. Probably a bad blade based on the description of how it failed. I imagine these blades are uniformly hard and would be less able to withstand a sideways strike as compared to a differentially hardened blade, especially with a flaw in the steel.
It's funny. I have a LTC. My wife gave it to me as a gift before I knew about HI khuks. I thought, at the time, that the LTC would be a great khuk. as compared to the tourist junker khuks. we are all familiar with. Not sure where the LTC fits in my plans now that I have a few HI blades.
Jeff