Not sure if this is a feature or a bug, but those on #org-mode prompted 
me to post it.

GNU Emacs 24.3.50.1 (x86_64-unknown-linux-gnu, GTK+ Version 2.24.10)
Org version 8.2.5c

If you take the following minimal example of an org file:
* A
** B
*** TODO C
*** D
*** E

And navigate to TODO C from an agenda buffer this will be the 
*displayed* text:
* A
** B
*** TODO C
*** D...

Leaving it to appear that D has children, when it in fact has a sibling 
that's been hidden.

Is this some type of custom variable I'm missing, or is this working as 
intended - or is this truly a bug?

May be worth mentioning, myself and others in #org-mode have noticed 
this happening in other contexts, however this was the only reproducible 
method.

- dan lamanna