Consequences of using a battery with broken shell

I noticed, that my battery has a nick on it, exposing the metal from the side. Unfortunately, I have been using it in a Swag II mod for a long time.

I will rewrap it, but am curious, could the broken battery have done any permanent damage to the mod? The mod has started to randomly lose power and after taking the battery out and putting it back in, it vapes fine again.

The mod's battery compartment is non-conductive from the sides.

Original source: https://www.e-cigarette-forum.com/threads/consequences-of-using-a-battery-with-broken-shell.965605/