Hey Finale,
Sorry for your loss. It happens to all of us, but it sucks whether it was a $3 diode, a $30 diode or a $300 diode. I do have two alternative explanations for what might have occurred for future reference based on my hundred or so purchase from DTR.
First, you may have gotten a diode that simply couldn't handle the current that a typical one in the lot does. I've had a few (mostly blue and green single-modes) that just didn't perform like they should have. Replacing with a different diode while keeping everything else the same worked. For each diode, I start with a lower current and then ramp up it up slowly while watching the output on a laser meter to see if its peaking out. If it starts dropping, I quickly turn down the power before the diode is damaged.
Alternatively, you may have received a module from DTR where the diode wasn't fully pressed in. This has happened a few times to me, but I have diode presses that I use to correct the issue. Left unfixed, you'll get a colimated beam where you can see the 'skew' as the beam is going through the lens at an angle. It also results in lower power as some is lost within the module. I've seen something similar that appeared to be a defect in the diode itself, but I don't have a proper microscope to see the error.
Either way, it won't help you in this situation, but you can keep your eyes open in the future.
-David
"Help, help, I'm being repressed!"