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I've run bulk federal in my MK I and have had no issues. I got mine for a smoking deal as well and other than needing a good cleaning when I got it it has been perfect.
No need to put the fancy expensive stuff into it. The gun will shoot just fine with any of the lighter 38gn HV rounds. I've mostly used CCI Blazer in my own MkIII with the recent addition of a box of Federal 525 bulk ammo. It works fine with both.
I'm not surprised. The added speed to take it to the "hyper" side implies an increased powder charge. And the recoil spring would not be chosen to deal with the added recoil impulse. That could lead to the bolt beating at the rear stop of the frame.
On simply HV or "High Velocity" ammo the added speed seems to come only from the use of a lighter bullet than the SV or "Standard Velocity" ammo. Specifially 36 to 38 gns for the HV vs 40 gns for the SV ammo.
I have 2 Mk I's, both with 7" tapered barrels, and I have put literally cases of both Federal and Winchester bulk ammo through them with no issues at all and excellent accuracy. Shoot, clean, repeat as necessary...
Unless you are experienced at it, or have detailed instructions in front of you, do not strip down a Mk I. They are simple but tricky to put back together