I wouldn't go that far but I had either intuition or OCD telling me to get it checked.
The smaller line closest to the center is where it was leaking. You really couldn't even see it unless it was pressurized. You could probably make your own tester out of a Fernco fitting, a PVC cap and a valve stem with a schrader valve. That's really all it looked like.
I've heard of it, never seen it though. I don't do a lot of transmission work though. The guy at the transmission shop didn't seem all that shocked by it.