Yes, this is indeed a JVM problem and i already filed a bug report with Sun and they reviewed and accepted it.
Here is their repsonse
Hi Salim,
Thank you for reporting this issue.
We have determined that this report is a new bug and entered the bug into our internal bug tracking system under Bug Id: 6706324.
You can monitor this bug on the Java Bug Database at http://bugs.sun.com/bugdatabase/view_bug.do?bug_id=6706324.
It may take a day or two before your bug shows up in this external database. If you are a member of the Sun Developer Network (SDN), there are two additional options once the bug is visible.
1. Voting for the bug
Click http://bugs.sun.com/bugdatabase/addVote.do?bug_id=6706324.
2. Adding the report to your Bug Watch list.
You will receive an email notification when this bug is updated.
Click http://bugs.sun.com/bugdatabase/addBugWatch.do?bug_id=6706324.
I hope they fix it soon,
Salim