This error has happened to me twice so far but unfortunately I wasn't paying complete attention either time, so I can't explain the exact circumstances for reproducing the bug. Hopefully someone else has encountered the same problem and can help shed some light on its cause.
Upon completing a rather complex level piece (a collection of static objects, primitives and particle effects) I have the tendency to group all the objects into a compound object to duplicate, rotate, etc. as I need. This error occurs when I have separated these collections to work on a specific element. All the objects that were previously in the collection disappear from the view-port, but still show up in the browse groups menu. I try to press undo, hoping that the objects would appear again in their original position, unfortunately they stay hidden.
Believing that this could just be a rendering error I save, close and re-open the editor only to find that all the objects have collapsed in on themselves at one specific point, all having the same scale and rotation.
This is most likely due to me using the editor in some odd way it wasn't meant to, I'd like to point out that on some parts I was using non-standard rotation and scaling to get things to fit together perfectly.
Anyway I thought I'd just post this in case anyone else had encountered similar problems.