Wanted to give an update on this.
I ran my mountain climber nephew up the stick in his mega-buck climbing harness. Verdict on why the shackle released? The tether was pulled into the sheave of the pulley and when the halyard got snug, it put enough tension on the tether to cause it to release.
So, no more tether for you! Replaced it with a smaller split ring. All good after several hoists!