Severe deformities right at the base of the trunk are frequent, these are due to overly long spells in small pots or bands, without any rectification occurring when the stock is bumped up. Enough new roots escape the original knot to keep the top coming along well enough for the plant to be sold and shipped. However, such specimens may need stout stakes to remain upright while still in nursery sizes. This is why you see so much non-climbing material at outlets that is trussed up like vines. Later these plants may often be able to have the stake taken away and perhaps grow for decades, only to lean or topple completely when adversities such as snow loads overcome the incomplete anchorage dating back to that time in the small container. It seems planting a root-bound specimen of a tall, pole-like fast-growing species such as a gum or pine could be quite a hazard in the making.

Nothing quite like forcing a drought stressed tree to put out loads of new leaves. I'd say take some pictures that way you have something to remember it by.

Don't give up. I am new to gardening and almost gave up on the one we replanted from back yard, it had such a sad look all winter and March, I was ready to buy new one from the store. Only to have it going strong - new leaves all over the main trunk and new branches coming out of base. I pruned it in February - cut all dry dead branches, added some furtilizer in late March, water if there is no rain, and keep it mulched with pine needles and pine bark -- they really like water. Can't wait to see it flower. Good luck.

I think sometimes people plant things based on what they see and don't see in other peoples' yards. Over ten years ago I planted a Magnolia graniflora on the south side of my house in suburban Bergen county (central eastern part). Technically, I believe we are listed as zone 6b but I have a lot of plants from zone 7 (camelia, Acuba, etc.) This is the big-leaved variety (not any super hardy dwarf form). I am familar with only a couple others planted around here but have noticed them being sold more frequently now around here. This tree has grown beautifully. Much better than I ever expected it too. The first two winter I remember were really bad (record cold, record ice etc.). The first couple of years, I would spray it with an antidesicant in the fall. Now, that would be impossible to do even if I wanted to and it has passed through the last several winters without ANY leave damage. I have had to cut back the lower branches of a large white pine that is growing in the vicinity of the magnolia in order to give the magnolia more room. (It is reaching beyond the second story at this point.) I think the significance of microclimates is underestimated. This tree is on the south side of the house and partly protected by adjacent conifers. My only regret is not planting it further away from the house. A lesson to everyone who plants a tree; however far you want to plant that tree, PLANT IT FURTHER AWAY!!