Hi Chris. It would appear that the negative contact in the tailcap is what is causing this. This can happen when using protected cells in some lights, as they are longer than true "18650" cells, due to the protection circuit that has been added. When the tailcap is screwed tight, after installing the cell, you may notice that at a certain point, it gets harder to tighten.
One other possibility as to how this may have happened, is if the light has been dropped on end. The momentum of the cell's own weight may be enough to dent the cell upon impact.
From your picture it is hard to tell if the cell has an added protection circuit, or not. Just guessing, it doesn't appear to be a protected cell. If the cell is a protected type, then you may run into problems, as mentioned, as the circuitry could easily be damaged. If the cell is an unprotected cell, this isn't good either as the separator in the cell could be damaged, or the cell could short out internally. In either case, this is not a good situation.
The best solution would be to either smooth out the contact area of the tailcap connector (spring, button, or whatever is used) so as to more evenly distribute the contact force, or trim/file it down a bit so it doesn't protrude as much. You may need to do both. Also, make sure that whatever makes contact with the cell, is not sharp, or pointed.
Dave