Motorola v265 battery bulging outward - not good

This can't be good. My primary data phone started reporting that it had an 'Invalid Battery', and considering that the battery and phone is less than a year old, it worried me a bit. I started getting more worried when I couldn't remove the cover. After a lot of hassle and prying, I was finally able to get the back off.

The battery is at about 110% to 115% size it normally should be - that can't be good. I've used normal chargers with it, so this has me a bit worried. Thankfully, I had a spare battery from my old v60i that I retired a long time ago and that is now in the phone.

I'm glad it didn't decide to explode. I'm curious how common this is. I'm going to end up taking the phone and the battery to Verizon tomorrow to see if I can get a replacement/explanation.