The bug

The class /Client/src/net/minecraft/block/BlockDragonEgg.java (MCP 1.8 name) does not extend the class /Client/src/net/minecraft/block/BlockFalling.java. However similar code from the BlockFalling class was used but the block placing for lazy chunks is incorrect. Currently it starts at the same position to test (for BlockFalling it starts one block below) and once it found a block beneath it, it places itself at that position (instead of one block above).

How to reproduce

1. Use the following command, replace [x] with: renderDistance * 16 (For example your render distance is 8: 8 * 16 = 128)

   /setblock ~[x] ~1 ~ dragon_egg
   

2. Go to where the dragon egg was placed
   It is one block in the ground instead of above the ground