While I have no idea as to why it failed, I question why your utility allows you to do splices in conductors ahead of their meter, this is very surprising as here any conductors ahead of their cash register is only done by them as if there is any fault or problem by state law they are responsible for any repairs, and any leakage of current they want to control.
I found some of the best heat shrink tubing "now get this" at one of the most unlikely places I would have ever looked, our local Menard's, it has a hot glue that totally envelops the conductors and like what Dennis has said I have never had one fail, but with three conductors in it impossible to seal all three with heat shrink unless it is made for it, and I have never seen a heat shrink with three openings that would work for this, the DB Polaris taps do work but if any pressure tries to bend the conductor at the point it enters the tap it can open the seal enough to allow moisture to enter the connection and cause its failure, depending upon the conductor size aluminum will burn off usually between one to two months if exposed to the earth by any moisture getting to it.
I do allot of trailer parks here and conductor failure is very common because of one reason or another, the reasons are endless, new trailers conductors are put in PVC now and we haven't had the failure with them like the ones not.
Our utility has a crimp on splice tap that work great, and this is what they use for taps mid way, it totally seals the connections and has a encapsulate gel in it that when they do the crimp some of it runs out the ends letting you know it is sealed, I have a line man who give me a few from time to time and I have never had one fail, but I have never found a source for them or know the cost.