Lets see now,
First the Brake fluid may have been to fast of a quench,Just a guess as I have never tried it.Old burnt motor oil works great and even better if you add a little transmission fluid with it,Vegetable oil or cooking oil of any kind works also.
Second,I have had this problem with recurved edges myself.When heat treating after grinding I would have the front part of the recurve try and curve back up like a katana does and thus crack the edge in a few places.I solved this problem by forging the blade then doing the heat treat before I did any grinding.Just grind slow and easy,keeping the blade coole off as you grind,get a wicked edge and when you are done grinding you just finish out the knife.
You can save the handle work you have done by forging another blade a little over sized of what you have now and finish the blade out by using the dimensions of the knife you cracked.Save that blade untill you start making Damascus and weld it into a billet and make another knife with it that way,I wouldn't try and save it any other way than that myself.
Bruce