With some understanding of the physical properties of osb we can determine the most likely cause.
Osb siding problems.
See how osb has decayed from prolonged contact with ground to same point as regular timber my point here is that osb will rot when exposed to high levels of moisture but just the same as any other timber or plywood.
Why osb grade t 1 11 siding fails the problem with t1 11 siding however is not with its cost functionality or even the aesthetics.
This is not the case nearly as much with the plywood version of t1 11.
The osb is nailed on correctly but is bowing out from the house between studs a good 4 5 inches.
And cover them with 7 16 osb and then half inch dow blue foam board.
We frame with 2x6 studs 24 o c.
The stigma around t1 11 today is its legacy of water damage.
The 7 16 osb sheathing on the sides of the house is buckling so badly it had caused the vinyl siding to unzip itself.
The type that really had issues was the lap type made by louisiana pacific lp.
Wood chip siding has been around for many years but in the late 80 s and early 90 s a certain type of osb oriented strand board siding really became popular around salem oregon and the pacific northwest.
As with most construction failures there is no single smoking gun problem and no silver bullet solution.
Wood siding will expand and contract in changing weather conditions and when installed tightly no room is allowed for these patterns causing the buckling.
Over time delamination edge checking and buckling are likely to happen as the glue slowly gives up.