Multiplayer: At 128Y+ Bed view shows blank screen instead of view of surroundings

In multiplayer, when using a bed placed at 128Y and above, the faded out screen shows as a blank blue screen (still showing chat box and inventory bar) as opposed to the normal faded out vision. Also, when leaving the bed there's a brief flash of underground caverns/lava (as if you were able to see through the ground) and the sound as if you're taking fall damage (even though no damage is taken).