1) .5 ohm coil is not the problem. The battery can handle it just fine. It's not a short (or even close enough to a short), it's just low resistance.
If, in fact, it was a .5 ohm coil yes, if it dropped even a tenth of an ohm, or perhaps the meter read a little high, then it'd be drawing over 10 amps and be unsafe. If something shifted then it would be possible to be even lower.
I agree, there are many variables involved here and it's be difficult to say for certain what the cause was without more details.
Maybe you melted an insulator and got a short that way. Maybe the coil was a little lower than you thought. Maybe your wick wasn't oxidized as well as you though. Maybe your were using a magnet to add a nipple to your battery (a horrible idea, safety wise) and it shifted causing a short. Maybe the battery had suffered damage from a fall, causing internal shorts in the battery. This is all speculation on my part but any of these could have caused this.
Bottom line, this battery was pushed past it's limits and should be recycled.