Cylinder sleeves raised

07minicooper

My 2007 mini cooper got hot and it was found that the cylinder sleeves #2&3 had turned and were raised, causing it to leak water and oil. However, the head and block were taken to a machinist and were said to NOT be warped. I understand that the cylinder sleeves turning and raising would cause the water and oil to leak, thus causing it to to overheat, but what would cause the cylinder sleeves to turn and raise. Also, there were heat tabs on the block and head that were still there, thus, it had not gotten hot enough to warp either, I was told.

I look and could not find anything online

What would cause this? I have an extended warranty plan but they are refusing to pay anything. They said it was negligence of allowing it to overheat; however, there are still heat tabs that are intact on the block and head.

Any insight would be greatly appreciated!

Thank you, Josh