The problem was the WELD... you cooked the spindle and made it brittle... the metal snap clearly shows this as a structural crystal break. NEXT TIME... use a 1.75" spindle, and SLEEVE it in dom. Weld on the sleeve, and just spot weld the spindle inside it.
The problem with that small trailer hub and spindle is the working load, as so the torque or weight pulling at the side was to much, if he would have invested in a five lug hub and spindle nthe working load would be able to carry the load as the spindle would have been thicker and built to carry the load, it still would have been cheaper,
That axle must have been defective,. Also y'all should have used an axle #84 much stronger. That 4 lug axle is like for a small harbor Freight trailer,