Once a laminate benchtop starts bulging the internal timber has swollen up from moisture. There is not much you could do about the bulging and the benchtop is likely nearing the end of its lifespan. You could disguise the torn out section so it looks nicer. I would suggest taping off around the area and applying Builders bog to fill the section. You can then sand the filler back so it is flush with the benchtop and then paint. We have the Dulux Renovation range which includes a laminate benchtop paint.