from Wyeast's site:
27. What are the causes of swollen packages? Can you sell them?
Swollen packages are almost always the cause of a small amount of sugar or CO2 being left in solution at the time of packaging. Upon shipment, CO2 can be released from solution or the yeast can consume the sugar and create a small amount of CO2. Cell autolysis, or cell death can also be a cause of swelling packaged. However, this is only in rare cases where the yeast is exposed to high temperature for an extended amount of time. If a package is swollen and has not been mishandled, it can be sold with confidence.
Sounds like it was exposed to high temp... especially if the ice pack was warm. Maybe make a starter, and see if the yeast is active and healthy?