Chunks rapidly switch between possible outcomes

Put the summary of the bug you're having here

Do not watch video or recreate bug if you have a history of seizures. I am no doctor and don't know if this can affect it or not but it seems like it.

Video: https://www.youtube.com/watch?v=C5yxzP5v-Qc
dont know if it will help you, but it seems to show the bug off better.

What I expected to happen was...:
I expected a normal world to be generated at any view distance.

What actually happened was...:
All chunks but spawn chunks were quickly recreating themselves when view distance is over 5 chunks.

Steps to Reproduce:
1.Open minecraft 1.8.1
2.to options and place view distance to 5 chunks
3.create new world
4.move a little
5.to options and change view distance to 6-32 chunks (doesn't matter)
6.see the mess

Strange Addition: when putting view distance to 32 all chunks, even ones that work within the 5 view chunk work around, started doing the bug.