Video: An iOS 4 bug shrinks your screen

[youtube]http://www.youtube.com/watch?v=SLMfLt9J8o0[/youtube]

In the video clip above, you have a demonstration of an iOS 4 bug that reduces the terminal screen of an iPhone 4 to a quarter of its normal size. The whole problem appeared out of the blue, as it were say the one who made the clip, after restoring network settings. I would say that it is either an incompatibility with an application installed from Cydia or iOS 4 has a problem with keeping the resolution on the Retina Display.

Basically, what we see in that frame is actually the normal resolution of an iPhone 2G/3G/3GS (480x320) instead of the normal resolution of the iPhone 4, which is 960x640. So iOS 4 unjustifiably reduces the resolution and displays the content in the old resolution. My opinion is that the only solution is a restore with set as new iPhone. However, has anyone else encountered this problem?