Some Rust-o-leum paints require that you either A) let it dry completely between coats, which could take several DAYS, or B)apply several light coats with just a few minutes between coats to allow it to "tack" slightly, and apply a heavy coat as the final.
I think that what happened with your experience is that the paint just below the so-called dry top surface wasn't dry, and when the solvents from the subsequent layers of paint were applied, it attacked the soft paint beneath which allowed the "dry" paint to raise and lift off.
I've alway had good luck with the stuff, and was able to totally paint an object in one step using several light coats and a heavy final coat with just a few minutes to a half hour between coats. Unless you get a run, you have to let it completely dry so you can sand it out and try again.
Another thing is to let it dry for a week or more before handling, if you can wait that long.