The bulge indicates a damaged sidewall
on your tire. It could give out from
pressure, age or stress (read: cornering).
The last would be a particularly inopportune
time for a blowout, since you would immediately be riding on
Warranty coverage will depend on whether Pirelli / dealer
feels that the bubble is the result of a defect or of
a curb/etc. They won't warranty the latter - but inspection
may show whether trauma was involved.
PS: nice college, nice town.