Mineral's on the money.
Most likely what you would find under the bubble if you tore it open is a crack next to one of the radial wires which then either
a: tore the inner lining and let air from the tyre through and caused the outer layer of rubber to peel away and form the separation
b: caused the separation through heat expansion alone.
If there is indeed a crack inside, there's a few things they could cry void warranty on, like running the tyre at inadequate pressure or running over something like a brick really hard. scraping the sidewall of the tyre along a curb etc wont cause a separation like that. If anyone ever tells you that, they are full of doggie doo doo.
On the unlikely chance there is no crack and the outer layer has just separated and come away, then its well and truly a manufacturing defect, and they should help you out in some way I would think.
I'd check out the warranty conditions are for your tyre, if they say no we cant help you out, get them to open the damage up in front of you to confirm there is a crack there.
(I should probably point out that I used to repair tyres for a scrap, all day, every working day of the week for 4 years in a truck tyre retread factory. And I used to see this sort of thing all the time

)