A friend was showing me how to use gasket lacquer, but he started getting carzing/crakcs in the top coat and couldn't tell me what caused it.

Anybody know?  

It looks like a widnshield after an accident. Looks kinda cool when desired but not so much when you don't.

maybe he needs to thin it a bit or get a new gasket on his dip tube

I had it happen to a shaft with 10+ coats of lacquer.  I would guess it was too much or too thick of lacquer.  Thin with 2 tbsp of acetone and buy a new gasket.

Larry is correct the laquer is too thick. Thin it a little , new gasket and pull it more slowly. That removes a little bit more per dip.