Orion has confirmed it's a bug
http://forums.lotro.com/showthread.php?t=86099&page=1
Same policy as the previous. Spread the word. Do not farm it, kill it if it is in the way or gets in your way during a battle, fine, sit there and kill it over and over again.... no.

Yup. :D
In these games, all it takes is sometimes one or two people accusing a person/guild of exploiting, and your reputation's ruined. :/