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We bypassed the oil cooler on my 95 z28, car has ran and drove fine, but all the sudden one day at idle it started blowing the o ring out of the oil filter so we replaced it with a new k&n, same thing. Its a fresh build with new oil pump and everything, only a couple miles on it.
 

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Is it the oil filter adapter that is leaking?

If so, then you may want to replace the adapter gasket with the GM upgrade with PN 88893990. This has the gasket bonded to a metal disk on each side. The kit comes with the o-ring and the gasket bonded to a metal disk. I made the mistake of using a FelPro gasket on top of the plate which prevented the o-ring form sealing correctly. Just make sure to remove the old gasket from the block and adapter then install the new one and torge the two hex bolts to 18 ft/lbs.
 
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