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Not to be a stickler here, but that tire wasn't blistered. That is something completely different from what is shown in the OP's picture. That tire that is just worn out.
Chunking happens when a fully treaded tire overheats, and chunks of the tread separate from the tire. Blistering is when a racing slick tire with no tread overheats, and the "tread" (which is not in fact treaded) develops blisters.
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