That is unfortunate. I have been useing one of Rays loaders for over a year with virtually no issues. Several manufacturers have marketed a single cylinder bucket over the years, it is just another way to do the job and it is simpler/fewer parts. I find the design simple and completely adequate for the tasks that a loader is supposed to be used for(it is not a grader or bulldozer). I bought the loader because it is similar to what I would build and for the price was very reasonable. The mechanical advantage of the rollback cylinder is not all that great and It will open the loader hydraulic safety before anything can be damaged(at least on my loader it does). It of course has enought rollback force to curl a full bucket of wet sand or gravel. In fact, if the hydraulic safety was set correctly, then you shouldn't be able to lift enough weight to damage it. I have used mine on quite a few stumps and the safety just opens if the stump dosn't move when I try and rollback or lift the bucket.
What exactly were you doing when it happened? The only time this point on the loader comes under extreme tension is with a lot of weight/force against the bottom/leading edge of the bucket. The point where the bucket attaches to the lift arms is the fulcrum and the bucket bottom out to the bucket leading edge is the lever. The more weight/force you aply to the bucket edge, the more tension is applied to the rollback cylinder. If you were running/scooping into a pile(with the bucket mostly level), the forces would have been more directly back into the ends of the loader arms and not much force would have been applied to the rollback cylinder.
The fact that the tube is bent leads me to believe this was a sudden catostrophic event. If it had been a series of small overloads, the metal would have fatigued and the tabs that the upper end of the cylinder attaches to would have just ripped out leaving the tube relatively in tact. The tube damage leads me to believe that there was not only enough force to rip the tabs out of the tube, but that it happened so quickly that the tube bent before the tabs could be ripped off completely. It does appear that the weld on one side of one of the tabs failed, but the other weld was still strong enough to rip out the tube wall under that tab. That is why the tube is bent less on this side, it took less force to remove this tab.
I only see two ways for this type failure to happen.
1. You had an extreme load in the bucket and were bouncing it over rough ground(going to fast). Force = Mass X Acceleration. A good bounce could easilly double or tripple the weight of the load in the bucket that the structure would have to absorb. Since most of the weight is up forward anyway, a full bucket makes the rear end feel really squirrely without something on the rear end to counter it so I do this slow with the bucket down low anyway. This is also hard on the front axle as without the ability to slip a tire, the front axle drivetrain can bind and break in 4WD.
2. You had the bucket down at a steep angle and were scraping and ran into an immovable object while at some speed and the loader had to absorb the stored energy in that moveing 3000 LB tactor/FEL Again F = M A. What does the leading edge of the bucket look like? The 254/284 has about 1300 lb of traction force. It would be a little higher with the extra weight of the loader. I have pushed ahead against objects(stumps/boulders) with my loader many times with the bucket in many different positions. When I say pushed, I mean in first gear, Low Low(creeper) range. If the object didn't move, the tractor stopped and the tires just started digging in, even in 4WD. There are a few posts up in the Attachments forum about similar type damage to rear blades and box scrapers being run into stumps and rocks at to high a speed. The impliment or the tractor mount structure always looses.