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Fiat-Allis 545B

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My son has this loader. It has a hydraulic issue that I can't figure out. The hydraulic reservoir will accumulate excessive pressure, so much pressure that it will cause the engine to bog down. All of the hydraulic system functions will operate normally until the excessive pressure will blow the cap out of the reservoir. We have cleaned the breather/pressure regulator on the reservoir. Tried using the machine with the hydraulic tank cap off, it worked okay for a while and then started blowing oil out. My basic question is where does this pressure come from during normal operation? The heat of the oil? I assume the system is supposed to have a small amount of pressure in it to help feed the various pumps and that is why it has a pressure regulator/breather instead of a simple breather on the system. If a pump had a blown seal and was putting system pressure into the reservoir i don't see how the bucket and lift arms could work properly.
I hope somebody has some thoughts that might help....

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