Thanks for the tips, guys! it is a cheapo Walmart knockoff, and it would be easy just to replace the whole thing. I do like to repair stuff where possible, I figure it is a way to learn things. Since the hose has threaded connectors at both ends, I think i will try the heatshrink route, and report back.
One reason why I like the walmart units is that the hose unscrews from the bladder and the mouthpiece, which facilitates cleaning it.
I will report back.