Roger, buffing out the Target Coatings products requires a lighter touch than with oil based products because of the heat generated. It should also cure for 14-30 days first, too. (technically, that's a good practice for oil based products, too) I ran into this with my first guitar body, learned the lesson, fixed the finish and then did buff it out and subsequent bodies just fine.
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Prashun, I think you're correct that the heat is the bigger culprit!
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The most expensive tool is the one you buy "cheaply" and often...