Could you post a screenshot of this? It sounds like a bug. If it is, it's worth reporting in the bug reports section for @Leinfors to see.
Terraria Community Forums
Aurora3500
Enderwither02
I have a few screenshots put in the "Screenshot Moment" thread - I use a 360, so it might be in the other, new-gen consoles still, but it was still weird.
Enderwither02
Here's a link to the image:
http://forums.terraria.org/index.php?attachments/image-jpeg.137805/
http://forums.terraria.org/index.php?attachments/image-jpeg.137805/
Aurora3500
I think this image is in a conversation because I can't see it. It may still be worth reporting in the Xbox360 bug reports. Though then again, it's possible it's already been reported at this point. Especially considering 360/PS3 have their final updates soon.
Enderwither02
It is reported, and it is likely that the glitch may also be in the new-gen consoles as well.