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BQ34Z100-G1: Smoking part and all connected parts.

Part Number: BQ34Z100-G1

I have inherited this design.  This design has been in use for a few years with no issues that I have heard about.  We got a new batch of Lithium-ion batteries and new battery monitor boards.  The BQ34Z100-G1 on our monitor board.  In the datasheet section 9 we have a 10K for R1, D1 is a BZT52C5V6-TP and Q1 is 2N7002ET1G to get REGIN voltage.  Our nominal battery voltage is 20.1V to 17V.  Our voltage divider for BAT is 748K over a 16K to GND. Our sense resistor is 0.0008 Ohms. I don't have the part number for the thermistor but it is a passive part averaging 9K to 11K at my room temperature.

During heavy sudden loading we get up to 65 amps spikes for about 50 ms  with a peak lasting about 5 ms.  We see 7+ amps of current spikes on top of everything that last around 5 ns, these are not continuous.  We are seeing a voltage spike of about 1.5 volts lasting for about 10us. We aso see occasional 6 volt voltage spike lasting ~40 ns.  

We are seeing the  BQ34Z100-G1 burn leaving pits near pins 5 and 6, sometimes these pins melt off. D1 and Q1 from above also burn at the same time.  I have not caught anything out of the above description happening when they burn.

I have been working on this problem for weeks and am at a dead end.  Do you have any suggestions?