Well, looks like the fan sits a little too close to the rad and the blades eventually wore a couple holes into the radiator.
The bikes never been down so I know that didn't happen because of crash damage. The damn fan's just too close. Gonna take it to the dealer later this week and see what they and KTM say about it. A new one costs $500. If they won't replace it for free then I'll just take it down to a rad shop and let them fix it. Then I'll shim the fan housing so it stands of the rad.