Oil pan gasket bulging?

[Fiat88]

I noticed that my oil pan gasket seeps oil. The gasket bulges out in some areas. Does this mean the gasket is shot? A while ago I snugged up the bolts too tight but today I loosened them up and just tightened them until it started to feel snug.

[htchevyii]

Sounds like the bolts were too tight and squeezed out the gasket and/or bent the pan flange? I haven't had an oil leak since I started coating my gaskets with Hylomar gasket dressing.