This has a possibility of happening on any Liberty with our aluminium front diff. It seems to happen when there is some spinning and a sudden grab of traction. Driving on roads would probably not do any harm. It is when wheeling and a situation occurs when the front tires get of the ground and you are on the gas. The Jeep drops and grabs traction and that sudden stress on the diff is what makes it pop. Most people will never run into this problem...only the lucky few! I've found that when wheeling, I'm on both the gas and the brakes at the same time, prepared to step on the brake as soon as possible.
Some guys have had theirs warrantied and some have not. I was able to score one when mine broke. The dealer then fixed it so the one I bought is sitting at AllJ's waiting for the next member of our club to break their diff...sort of like a buy and replace policy. That way, there is always one on hand. A bit pricey but a good idea maybe for other clubs.
Hope this helps.
Dave