Personally, I don't see how it could happen either, so don't think I am backing the story or whathaveyou. Just thought since rotaryresurrection backed what the guy was saying, I gave it some merit and thought it was worth mentioning.. I think you cleared it up pretty well what the scoup is.
There could be more to the story about the cooler bursting.. The guy could have been running a high HP FD with stainless lines modded oil pump, regulator, etc.. but like you say there should be some other failure before the cooler would burst. or it could be that he had a custom cooler and the welds didnt hold on the fitting or some such.. who knows?
I'll just chalk it up as a rotary urban legend.

 

Where can I find the specs for the oil lines? Also what size and thread are the fmoc fittings?

 

If you have the old lnes, take them to a hydraulic shop and have the soft lines replaced. If you don't have them, head back to the jy , or find another set, including the banjo bolts. The only place that the specs might be found would be on the hose itself, as far as I know.