Hello Rudy,
Yes tightening down the filter canister with two o-rings in place, can cause the canister to break at the rim. This can happen with or without a torque wrench. In addition, having two o-rings in place causes the filter canister not to compress all the way and the filter may not seal against the inside upper housing seal. This situation may allow unfiltered oil to circulate in the engine. Consider yourself fortunate that the problem is resolved and the filter canister did not fail as you were driving down the road. I also use the "hand feel" for tightening these parts.
