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Peering down between the outer housing and inner housing. This is where the seal is installed, and it moves back and forth (up and down in this pic) inside this gap. Notice all the funk at the bottom. I can only imagine that this stuff was originally part of the seal. My assumption here is that a lack of resistance to the fluid caused a breakdown of the seal.
Additionally, I'm not so sure that the outer and inner parts of the housing, which are made out of some sort of plastic, are strong enough to resist flexing when pressure is applied.
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