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Sell your bad parts to the obese IPUIG guy with the self portrait to recoup some of your losses so he can tell people he has something that makes power and breaks parts. He'd be the guy who drove a 6cyl Vette if there was such a thing...LOL
If you think that is my picture you are sadly mistaken. I've been in the Military for 29 years and I PT and run several times per week, the avatar is a joke, like many others on this site.
I made the statement that your post made my head hurt because you are clearly not familiar with the drive train configuration on a C-5. Making those level of recommendations without even being familiar with the equipment is ignorant and sloppy. In my line of work that gets people killed.
Have a nice day and may I suggest you procure a C-5 shop manual before you post any further recommendations.
What peak rpm are you running to? Unless the balance is way off it would not cause the failure. It would shake your a$$ off and rob you of power before causing something to break.
You might want to order this book. It might help you out: How to Rebuild GM LS-Series Engines by Chris Werner. It doesn't tell you everything but a good starting point.
what would cause the bearings in the main caps to fold up ie a tight u shape
Posting some photos would be a big help in giving you an answer. Also more details of the build as well. What parts were in this engine? Type pistons, compression ratio, how much boost, type of oil pump, cam degree, etc..
http://www.dmperformance.org/ls6.html?1171930449750 (Not recommending this company in particular, they just had a nice web page)
Maybe consider a girdle on stiffening up a stock aluminum LS2 block. Back to the old school...IMO, I'd still check the main bearing bore and alignment, and the crankshaft runout. I run race bearings like the Clevite "H" and the King Alecular race for the increased crush loads on high boost/nitrous applications. Also, quality main and rod bolts will help keep you together. You're making awesome power, good luck with your solution to the bearing problem, I'm out of this one now...
If this is the case you should feel the engine vibrating even under a light load. If it was vibrating noticibly you should have never exposed the engine to full power.
what would cause the bearings in the main caps to fold up ie a tight u shape
Define tight U shape, have you performed a run-out on the crank shaft and verified the main bearing dimensions and bearing clearances?