Apparently either the small O-ring and/or bearing outer seal (or combination of both) had failed, permitting water to enter the swingarm interior. Thus flushing the tapered roller bearings of needed lubrication provided by the grease they are packed with. Needless to say, I have swingarm bearings,seals and o-rings on order as we speak. I do not understand why Kawa would not have used a sealed bearing design. I can see as to why they failed. For the most part, all you have is a small O-ring that is preventing water from entering the rear swingarm. Doesn't take much riding in sandy water to deteriate these O-rings. I am draining and flushing the rear differential and hoping it is not damaged. Although I change the differential fluids aprox every 6 months, it does not take long for sandy water to do it's damage. I would recommend for all who occassionally ride in water "above" their swingarms to periodically remove and inspect these seals and bearings. I will have to perform this service more frequently.