A bypass flow was foreseen in the German AVR pebble bed reactor in order to cool the shutdown rods, which cannot withstand temperatures higher than 700°C and which were guided in separate, so called reflector noses. Unfortunately this essential bypass was forgotten by AVR operators in calculation of the core flow, i.e. the core coolant flow was calculated higher than it was in reality. This led to a temperature increase in the core compared to calculated values by at maximum 40 to 70°C.
This does not explain the observed hot spots in the AVR, which amounted to values of 300°C and are probably mainly due to pebble bed mechanics reasons. Core external bypass flows do not lead to hot spots but to a homogeneous temperature increase.
For more details see:
http://www.nuclear-engineering-journal.com/web/o_archiv.asp?o_id=200804221619-119&task=04&nav_id=