Sounds like a clear warranty issue.
I've seen new (cheap, not maker made) batteries pop when new. But that's just a repeat of the stories you know about.
The real horror story here is that any service call or counter usually costs more than a battery or the camcorder. My old JVC does not fry batteries and neither do other camcorders at the office but we use the maker's battery and on some setups we have a charger so we can use the camcorder while another battery is in the charger.
Remember I only have the story as presented so I have to guess what fry means.