"...but we had a bad snowstorm and ice just as the buds were beginning to open..."
Make sure you mention this to the arborist. Also, document the temperatures during the period prior to bud opening through the snowstorm and ice.
This type of long vertical cracking can occur when a plant has actively started moving liquids up through its vascular system, and then suddenly experiences temperatures below freezing for a period of time - especially non-native plants from generally milder climes that wouldn't have a natural adaptation to seesawing temperatures.
There were trees on the University of Kentucky campus that our old horticultural professor loved to point out in late winter, when this exact trait would be displayed. He would insert a quarter into the crack in the Water Oak (
Quercus nigra) as an object lesson. This cracking never killed the tree - as it exhibited the phase change expansion of liquid to solid which closed after the solid thawed back to liquid - but if there had been significant fluids in the xylem/phloem, it would have leaked out
just like your magnolia is doing.
That may not be your answer, but it sure looks like it. Tell us what your arborist thinks.
You might also reach out to the American Magnolia Society - I suspect they have an online presence with many members who love to answer questions like this. There are an abnormal number of them from the frosty winter wastelands of the upper Midwest (Wisconsin, Illinois, Michigan). Gluttons for horticultural punishment...