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Wow, I would think the only way the gasket is showing, is if when the oil filter was put on the rubber gasket was not properly seated. So chances are after the last oil change the rubber gasket was showing however the filter probably was not tight because of this and loosened up over time. I would think if it ran out of oil there could be substantial damage to the engine. I just do not see any other way this could have occurred, and feel strongly the filter was put on with the rubber gasket not seated correctly.
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