Batteries run on chemical reactions. A battery that’s behaving properly doesn’t swell but if something goes wrong with the reaction (temperature regulator fails, too much current forced into the battery, internal short circuit, etc.) then you can get a lot more energy released in the battery that it was intended to. That can boil the electrolyte and release other funky gases from the chemicals in the battery, which all takes up more space than the original chemicals. And, since the battery is mostly sealed, that pressurizes the inside of the battery and makes it swell.
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