Mullet called it.
Don't worry much about the set. 1 and 1/8" isn't too bad at all for oak. Since you added reflex, it's probably slightly more than that, and it probably does come from too much bend close to the handle. But we've all seen worse.
As you tiller next time, try had not to pull the bow past the intended draw weight at any stage. An inline scale and pulley set up on your tiller tree is great, but even just a weight you can hang on the long-string works fine. Even if the bow only bends a couple inches, make whatever corrections you can, and look again. This really helps with both set and coming in at exactly the draw weight you intend.