I'm assuming by 25R you mean the green Samsungs. At 0.17 ohm, you're pulling ~22A at 3.7V nominal and 25Rs are only rated to 20A. On a hybrid mech that's not a good thing. Looking at the photo the rda looks like brass. Is the brass lacquered? Sometimes that's done with brass to help maintain the finish, although not something I would personally do on an rda.
Somehow you're burning the finish and punching a hole through by your description of an actual hole in there. At best I would hope for just scorching the finish from overheating, but to punch a hole through suggests maybe arcing to make that happen, which can be a very bad thing for your personal health. I expect the mod feeling really hot in your hand. Honest, put the mod down and step away from the table. The probability of overheating your battery is great, and "energetic" venting can be way worse than some scorching on the rda.
OK, on a 20A battery, I wouldn't exceed a 16-17A draw (actually, I shouldn't exceed 15A but that's me). That would put your minimum build ~0.3 ohm. Anything lower and you will exceed the capability of the battery. There are some 30A batteries out there if you want to edge up a bit more. Here's a list of recommended batteries and what they tested out at. Use the tested current to judge performance, not the manufacturer's claims which tend to be exaggerated.
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Second, I'd avoid a hybrid mech myself. The direct pin to positive on the battery is an invitation for mischief. Like arcing.
Best advice I can think to pass on is take it back to the shop you bought it at/contact the website vendor you bought it from and see if they'll help out on a claim of product defect and either exchange or refund. That might not work out if they claim the damage was the result of improper use, but worth the effort as you spent quite a bit on the setup. Lose the hybrid as well, either back to the shop or maybe eBay to recoup some of the money if you can't get a refund. If you must use a mech, get one with a proper 510 so your battery contact is secure. Finally, always check what your current draw will be with your build, and build in a buffer so you don't try to pull too much and end up with a bang. Steam Engine is really handy for a quick calculation based on the resistance and battery your choose. Here's a link
Ohm's law