Your going to have to repin it. I drill a small hole in the pin and drive it out with a punch. You probably swelled the center of the pin when you peened it.
You want to swell the ends of the pin by using the ball end of a ballpeen hammer with light blows around the edges of the pin not the center.
There are a couple good books on this subject that are highly recomended, one is ''How to make folding knives'' by Ron Lake, Clay, & Frank Centif?.
The other is How to make slip joints by Tery Davis, Eugene Shadly.
Hope this helps, Don Hanson lll