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That is/was the purge/bleed quick disconnect from the oil/water exchanger to the coolant tank that has failed. The barbed piece is inside the other hose. I would not re use that fitting since it has already failed once. Of course the proper repair would be to replace the fitting using the correct part. However in the interim you can get a 1/4 or 3/16" brass barbed connector (take the fitting to compare) at auto parts or Lowes etc and join together. You will then need to properly purge the system of air.
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