Originally Posted by
beanforge
I think you might have the o-rings swapped. If you use the o-ring that goes in the threaded preload nut (on the outside of the shock body) for the cap dealio, it will squeeze out of the cap as you describe.
+1 I bet this is what happened as well. When I was assembling my FT SC10 shocks, I almost did this... but I luckily caught it at the last minute. But, it's an easy mistake to make