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Wrapped, unwrapped, coated, uncoated.........
At some point water gets in.
I've seen it happen in plenty of different frag racks and plenty of other equipmentas well. Vortechs and koralia power heads have a pretty good history as well.
Once that covering has the slightest unseen crack its only a matter of time.
I have a strong suspicion that encased magnets rust because someone has dropped it and put an unnoticed hair line crack in the case. I have a number of rusted magnets attached to a pole in my basement...