The Kobo devices do have a bug with long paragraphs. Whether it is the Kobo specific or ADE, I don't know. But, as the Sony seems OK, it might just be Kobo.
What I see is that if the a paragraph has more text than a screen, the start of the paragraph will be moved to the top of the next screen. It was discussed in the Kobo forum late last year, but someone said it had been in all firmware versions. I played with it a little bit to see the limits, but I didn't try a paragraph as long as what you have, so I don't know what happens after several screens of text.
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