Search for Larry Brand. He's done a LOT of research on tube fin behavior.
What you've experienced is classic fin flutter as applied to tubes. More specifically, check this:
http://www.rocketreviews.com/reviews..._da_bomb.shtml
Larry glasses the outside diameter of lower portion of the tube fins, but I think it's the "inside" lower outer quadrant of the tube fin that gets incredibly stressed when speeds approach mach. The simplest solution is to use a stiffer tube (Blue Tube, Magnaframe, FG, or carbon), or to laminate the INSIDE of the tube fins with a layer of glass for reinforcement.
I've also had tube fin rockets spontaneously deconstruct themselves in flight for the same reason.
Because of the incredible drag of tube fin rockets, mach speeds are usually just not part of the equations, but with a big enough motor, even a plate could reach mach.
Layne (Pem Tech) says the scalloped fins on the King Kraken don't have the same issue, and he's even offered a replacement kit if one fails on a commercial motor. I've got a CTI 38-6xl motor waiting to put it to the test once I get around to buying/building one.
Cheers,
- Ken