I've seen this happen before, as I mentioned. Usually the extension rod spring either gets weak and/or it breaks. Then there is minimal or no buffer when the gas pushes the piston back which produces an over extension on both parts as well as possible sticking. This in turn causes the rod and piston to be returned to position by impact of the bolt carrier instead of the spring causing the return. This in turn puts excess stress on the rod head and the piston stem and if not caught in time can ruin the cavity of the RSB where the rod sits.
The one instance I mentioned previously is probably the most severe I have ever seen in person.
Good stuff GG. I guess the jackhammeing you describe is indeed a pretty rough ride! I hadn't thought of a spring failure combined with continued use of the carbine. I guess even Simonov himself couldn't think of everything.
Railrider, I would suggest you reassemble in steps to see where the fitment issue might be:
1) Does the op rod fit in there w/o the spring and no gas tube/piston and the lever turn down fully to locked?
2) Does the op rod + spring fit in there with no gas tube/piston and the lever turn down fully to locked?
3) Does the empty gas tube fit in place (with no op rod, spring or piston) and the lever turn down to locked?
4) Does the gas tube fit in place with the op rod & spring (no gas piston) and the lever turn down to locked? (Be careful with this config when you take it off again to not open the lever too far, the op-rod can shoot into the gas tube and get stuck and then you have a stuck gas tube with no really easy way to get it back apart...ask me how I know this).
Definitely check the ferrule rivet head like P32 says. That causes problems when the head is mismatched or the rivet tail has not been expanded enough or ground flush. Also check that the handguard length is good and you're not too long to fit comfortably between the gas block and rear sight block.
One final thing to check is that the top angle of the ferrule is correct. I had a Sino-Banian that had a mismatched replacement gas tube. When I got it the lever was stuck about 30° from full locked. No matter what I tried, it just wouldn't lock up. I finally put the gas tube on w/o anything inside and still couldn't get it to lock up. I took a small file and took off just a little bit of metal on the angled portion, and it fit perfectly. (That gun is still my favorite Sino-Banian BTW)