Originally Posted by Crazyflyingplastics
since I imagine I've been driving it like this since january and taken it on some trails, is it ok to still drive regularly?
that is a blown shock bushing. this common for lifts lacking proper bumpstop extensions and/or using poor quality bushing material.
as said, spray the bolts liberally with PB Blaster for several days before removal. Install some quality shocks of the proper length for your suspension height, set the bumpstop extensions to take care of those new shocks, and never worry about it again.