I can't offer much help, but I am fairly confident it is not a 'known bug'. I have been following SONY readers for quite a while, and used four of them so far (two 900s, one 350 and one 950) and never encountered anything quite like it.
However, poor formatting of epubs - and you see A LOT OF IT - can create all sorts of weird problems. Unfortunately, editors keep treating us like second-class customers.
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