O1 is basically fool proof to heat treat as long as you are getting to the right temperature. If the blades are not hard, e.g. the file is cutting them, then you are not getting hot enough. I agree, putting the blade in the flame from the torch is not a good idea. What may be happening is that your forge is not retaining enough heat to really work correctly. It's not the flame that does the work inside a forge. It's the walls heating up and radiating heat back into the center of the forge. The flame is just going to spot heat the blade or worse will still contain unburnt oxygen and that will mean losing steel to scale or uneven heating and warps as you've already discovered. Let the firebox warm up until it glows well, then put the steel inside. You may need to consider closing off any openings to restrict heat loss and find your forge works better too. All you need is enough space to get the razor through the door into the heat.
Second, use room temperature oil. That the oil does not flare could prove the blade is not hot enough but most oil will flare at 4-500 F so that doesn't mean anything. The mass of a razor is so small that fires are rare in quenching anyway. The warm or hot oil seems common in all the sites that reference heat treating with oil. So the next logical step is to not heat the oil. If you were right at the critical non magnetic temperature the cool oil might kick the blade steel over to martensite where the warm oil would not have enough gradient to make the steel drop below the nose of the hardening curve. But that means you don't have enough heat in the blade. YOu have to beat the nose of the TTT curve in about a second or two with O1. As I said before, don't dawdle between the fire and the quench.