Mould, transparency, feathering - ODD BEHAVIOR

[-=Drifter=-]

There is something going awry here in mouldtown.
I drew the US flag, feathered it a little, made it a little transparent, then applied the mould tool to make it wavy. Worked great. But every time I close the file and re-open it, the picture is extremely different. I can get it back to normal again by removing the mould and then re-applying it.
Anyone know why this is happening?

The flag test mould xar file I present here is the goofy-looking flag, but if you remove the mould, the flag comes back and then can be re-moulded.