Mike, not on here as much, but got your PM.
This was relatively common back when the Intellect Battery "IB" brand was being used from Cheap Battery Packs, still happened to some degree even with the newer, "better" yellow/orange "Elite" brand of 2/3 A 1500mAh cells.
I had this happen to
three packs I had gotten from Ed (MadMaxabeam) who replaced them for me, and like you say it feels like a 22 or ladyfinger firecracker going off inside your light. When you open up the pack you don't see any apparent damage. My occasions did not blow out the side push button cover, split the shrink wrap, or do any damage elsewhere. It is obviously a rapid gas venting from what turns out to be a substandard, and/or weakened cell when heavy demand current drain is put through it as one in the series of 12-13 cells.
After Ed disappeared from the scene in mid 2007, I got a spot wielder and began the learning process of making various battery packs, because one of his replacement packs popped again after several months. If it is hydrogen gas, there was no ignition as flames would have been obvious to see signs of. Again, not even the individual battery cell label was melted, but one of my popped cells was slightly bulged.
When I took the pack apart and tested each cell with voltmeter, it was obvious which one had a much lower voltage than the rest. When I selectively replaced that one cell, the pack was fine again. However, after many conversations with Mike at CheapBatteryPacks.com over this and how a number of his new Elite cells had either zero or < 0.9 volts on arrival, it became apparent that the Chinese cranked these out in their typical low quality manner. I had to charge & discharge all the cells several times to find those that were sub-par before making into a pack. Luckily I was buying enough quantity from Mike that he was generous with giving free replacements for the duds.
Now even if you got good cells (i.e. from a pack I made for you), over time these low resistance high performance NiMH cells wear down as the high drain rates just beat the crap out of them, and the weakest link cell in the chain will develop an internal short and when exposed to high current drain, do the vent explosion you noticed. In all my cases, the event was enough to damage the weak cell, break the battery series circuit, and no longer turned on the light. If your pack still turned on the light and/or had what looks like respectable total pack voltage, then the cell that vented did not completely short out, but likely will soon. It should still be detectable with individual cell testing.
In terms of worry....I would not worry from a safety standpoint, based on my experience...but you have a cell that has either failed or on its way to total failure and must be replaced. So your being able to consider it a reliable pack is no longer there. It may or may not "pop" again either during charging, but most likely during the high current discharging in the light. Let me know if this answers all your questions.