HT2101 My iPhone's 4 battery exploded. What do I do next? 1 year warranty period is over; however, this is a clear hardware issue which I didn't cause (didn't drop the phone, the battery just exploded while charging the phone)

I put my iphone to charge for about an hour. After an hour I found that the battery exploded. It literally exploded pushing the back cover off the whole thing. That is crazy... iphones explode?? what if this happened in my pocked and some nasty liquids going all over.
Please let me know what do I do next about it. 1 year warranty is gone but it is not my fault the thing exploded. Should be some kind of hardware issue. I found on the internet that this happens quite often.

I had the same thing happen to my iPhone but much less extreme. The back had popped away from the frame at the top, below the headphone jack. I tried to push it back but it would not stay. My first thought was that this was attributed to a bad/bloated battery. I took it in to my local Apple store where it was diagnosed as having a defective back. I brought up my bloated battery suspition with the Genious who instantly shrugged it off. The back was defective and that was it.
A new back was ordered and when it came in, I took the phone in for the back to be replaced. The new Genious went back to their service area with the phone, emerging a few minutes later stating that the back was not the issue...it was a bloated battery which had pushed the back off. They ended up replacing the phone under warranty.
Yours is very extreme since on mine, only one corner of the back was pushed away. I certainly hope you can get Apple to correct it without charge since this is clearly an issue with a bad battery and a dangerous one at that. Best of luck to you.

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