As an update, unlike Isotta who owned their issue and are sending me a replacement free of charge, BackScatter is taking an approach of blaming us and making us pay for the parts, but at least I get free labor (insert jerk off motion here). Given we inspect all our gear before assembling and ensure no debris is ever present before putting the battery cap on, and there was none, they want to try and play the good guy while attempting to place blame, nevermind the o-rings were CLEARLY smaller in the failed unit compared to the one that didn't fail.
So I'm paying for the parts and shipping but ultimately I'm ditching their trash product and support and looking at better solutions with significantly better customer support.
This is interesting considering on another forum, WetPixel, they have three documented floods just this year, I'm the fourth once I get registered and can reply. I talked with a few locals who had the same issue, so they're looking at 7+ people within a year having the exact same issue with new HF-1 strobes, but sure, everyone else is the problem, not Backscatter. I won't even sell these things, I'll take them to the gun range and shoot them once I get the replacement strobes. Straight hot trash,

to backscatter.