what graphics card are you using and what are the drivers and did you update them recently?
a while ago i got fed up with my computer crashing on start up when i had two monitors enabled so i thought i'd update the graphics card drivers
not sure if it fixed me from crashing but the rotate tool stopped working as it should and did what you showed in the video
so i had to reinstall the older drivers and it works fine... with the odd crash on start up, but i'd rather put up with that then a rotate tool that doesn't work...
that's a "Ch" pronounced as a "K"
Computer skills I should have:
Maya, XSI, Photoshop, AfterEffects, Motion, Illustrator, Flash, Swift3D