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[Grump]

I can only go from past experience and guess at metal sealed, you won't know for sure until you get them out and clean them up.
Glad you have found the cause,.
I would not recommend the action taken of moving the spindle forward as that would hasten bearing wear and could dislodge anything else that may be at fault.
This could split a bearing and result in injury, bad advise from a non engineer in my opinion, did you get it in writing so you can sue, (Where there's blame there's a claim, as I was once quoted.)
What you have done will very quickly be undone and could put excess strain on the spindle if it's a hollow one.
If it were my prize Ethal I would strip her down without delay and inspect each component to satisfy myself of the damage done before proceeding any further, it could become very expensive if you decide to turn with it now.
Probable cause was over tightened belt, follow the manufacturers destructions on the amount of tension / slack in belt.

 

[Grump]

Sorry I just reread your post it was the pulley you moved, not so disastrous but even so the pulleys should line up so the belt is sitting correctly and never need to be moved.
By moving it you may have eased the strain on one bearing and placed it on the other, still not advise I would follow with any regard unless it was clearly out of line.

 

[Penpal]

Stretch a thread from the flat of the top pulley to the flat of the bottom it should kiss the sides all the way called alignment very important having said that I have seen grossly aligned pulleys function perfectly I had a mate who changed speed one pulley out for umpteen years no probs I do like correctly aligned everything and one half of a pen at a time. There are many checks still needed.

Peter.