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Looks like you have a bubble in your sidewall.
I personally think that it's a manufacturers defect but good luck getting BMW to cover it.
I had to buy a new tire when I got mine.
Bubble could either have been caused by a separation of materials in your sidewall from poor manufacturing or hitting a pothole at a high speed. Maybe it wasn't you but someone else who drove the car at some point. You may have had it for a while and just not noticed it.
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