Paul Comstock wrote in his book "The Bent Stick" that you could stop a fret in it's tracks. Scrape a few swipes behind the fret on the tip end of the fret the length of the fret.
Does that make sense. If your fret goes all the way across the limb (say your limb is 1.5" at the spot were it fretted, for example) you want scrape a few swipes 1.5" to 2" from where the fret starts or fairly close. This weaken the stiff spot and take some strain off the fret. It may need scraped on both side of the fret but DO NOT scrape the fret.
Might be worth a shot. I had a few small fret's on a character bow I finished and been shooting on both sides of a knot. The fret's where just on edge of the limb and only about 1/8" or so. I got to looking at the area real close and noticed the limb was just a tad thicker in that spot on the side it fretted than the opposite side of the limb and I thined her down a little and it stopped it in it's tracks.
Good luck and like Pat said, Time to start on another.
Stiks