well it was red in colour not blue and there was ALOT of it enough so that it was built up around the head of the bolts. Unless they are using an anerobic type sealer on these bolts but that really doesn't make any sense does it. As for being warranty or not that will be up to HPI but 3 came out fine and 1 broke off so it could be cross threaded for all i know i'll let them decide.