[Sei]

You must be using Firefox, right? Sometimes the browser does not get a reply fast enough and times out, which results in some weird layering. I tried on FF and it layered like yours, but then did the same thing on Chrome, and it saved fine. Rest assured, a fix is on the to-do list for the future.

Here's some more information from Coda and Nexess:

Originally Posted by Coda

If you're having problems with layers saving, yes, try a different browser, but also try editing your avatar at a different time of day. It's really about speed more than anything else.

Originally Posted by Nexess

But for the actual layering issue it's just the time out settings on your browser, Firefox and IE have shorter ones than Chrome, that's why it's working best right now.