No, no catastrophic failure. But the tension from the dealer was not right. The manual recomends between 25-30mm, mine had about 35-40mm of "slap" in the chain. That and the tensioner on the left hand side of the bike wasn't even touching the pin that it should have been.
Allow me to clarify, I am not bashing my dealer. This is something that seems to have slipped passed him, no big deal, for all I know the bike comes from the factory with the rear wheel on it already.
So, I adjusted my chain tension yesterday, I am now up to the ninth notch in the tensioner and let me tell you, a totally different ride with a properly tensioned chain. Before if I released the throttle the bike would "snatch" beneath me. Also if I cracked the throttle to quickly the same "snatching" but forward this time. Now, while there is still some mild "jerking" it is totally a much smoother ride.
The moral of the story here is, "Keep you chains properly tensioned, and your bike won't get ripped out from under you." or "If you don't like shrapnel imbedded in your leg, properly tighten your chain."
That is all for now,
Sam