BFKIRK,
As Rich2001 stated, you have heat treated the metal causing the molecular structure to change or crystalize in nature. By hardening the metal, you have changed its elastic properties and the ability to thermally expand and contract safely. The Navy found out about this the hard way during the 60's. Carbon steel was used primairly in the construction of all steam piping withing the engineering plants of vessels. But the newer 1200psi 975deg designs of the early and middle 60's showed that operating above 775deg was definately a no no. Quite a few mishaps were reported where after several heating and cooling cycles, piping would catastrophicly fail. Not a seam or simple parting of the piping, but the piping would fracture and explode. That is why during the late 60's and 70's the Navy instituted levels of assurance in all construction materials. Level-1 any temps above 775deg, liquid oxygen and pressures above 3000psi, Sub-safe, level-3 etc.
Having a bulge in this piping shows that the metal has under-gone some type of structural change. The only way to know for sure if the metal properties have changed to an unsafe condition is to perform a microscopic examination to see if the grain of the metal has crystalized.
If you have any doubt what so ever about the safety of the piping replace it. It's better to be safe at any cost than having to, as we use to call it in the Navy, "Sit and the end of the table that has no water glass." OSHA investigations are extremly thorough. If your records show that overheating caused a structural change in the piping, and was not corrected. You will be on the hook.