I will admit that I know nothing of the AR platform, so I will rely on the advice provided by Malice.
Since it is not possible to fire out of battery. Then there are two issues which need resolution in understanding the event. Firstly there is the damage to the cam lock and the damage to the receiver (the little nick). Secondly, there is the issue of how the casing, in the neck and shoulder area, managed to fold and wrap into itself as shown on the picture.
The Op suggests that the correct amount of powder was used. I used to own a new Remy pump in 243. That thing blew second fired casings like nobody's business. My 223 (bolt) split a few casing necks open too.
In all instances, the bullet was ejected down the barrel and the escaped gas discharged itself out the opened orifice. This case did not fail, it was violently exploded open.
Malice, if one assumes the powder charge was dangerously hot and the rifle fired while in battery, could the force of the exploding casing pushed back the bolt outside of the gas system orifice up the barrel? Could the combination of the gas from the exploding shell and up the barrel have actually activated the gas system to bring the bolt out of battery (say 3/4 of it's normal travel) and drag the casing with it, damaged the carrier and still have enough spring energy to force the remnant casing back into the chamber in it's ragged form to "squeeze" it back into the chamber without ejection?
If the rifle cannot fire without being fully locked up...that primer was cleanly hit and detonated by the firing pin (as opposed to wicked - like a slam fire), could say...if the powder was too slow or fast in burning...have created too much pressure and residual burning time to cause the damage witnessed.
The picture shows the casing was ribboned open and that can only happen outside of the confines of the chamber. To have that happen, by default, the gas pressure in the port may have been sufficient to move the bolt out of battery while the powder was still burning. In this instance, the barrel would still be pressurized (as a result of the overload) and the bullet not yet ejected, the pressure would then find the weakest point....the casing, and blow wide open. With a normal load, the pressure would be dropping quickly, but with an overload...or incorrect powder...it would keep burning until depleted.