FULL PRODUCT VERSION :
Intel(R) HD Graphics

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows [Version 6.1.7601]

EXTRA RELEVANT SYSTEM CONFIGURATION :
64-bit Windows, SP1,

A DESCRIPTION OF THE PROBLEM :
Creating a minimal JFrame application, then dragging its top edge to the top of the physical screen (enlarging the application window in the process), results in Windows initiating a resizing of the window to its maximum possible vertical extent. However, the interior of the JFrame is not resized; its lower boundary remains where it was before dragging the top edge commenced.

REGRESSION. Last worked in version 6u31

STEPS TO FOLLOW TO REPRODUCE THE PROBLEM :
Compile the following code:

public class Expander extends javax.swing.JFrame
{
    public Expander()
    {
        this.setBounds(0, 0, 300, 300);
    }

    public static void main(String args[])
    {
        java.awt.EventQueue.invokeLater(new Runnable()
        {
            public void run()
            {
                new Expander().setVisible(true);
            }
        });
    }
}

Run the application.

When it appears on screen, drag the entire application window to the center of the screen.

Move the mouse pointer to the top-most edge of the application window (the mouse pointer will change to a double-headed vertical arrow).

Click and hold down the left mouse button.

Drag the top edge of the application window to the top-most edge of the physical screen.

Windows will initiate a vertical-resize event, causing the application window to grow vertically to its maximum possible extent.

  Release the mouse button.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
The content of the JFrame should expand vertically to fill the newly expanded interior of the JFrame.
ACTUAL -
All of the interior area within the JFrame below the original lower boundary of the interior area is black, with nothing having expanded downward to fill that area.

REPRODUCIBILITY :
This bug can be reproduced always.

---------- BEGIN SOURCE ----------
public class Expander extends javax.swing.JFrame
{
    public Expander()
    {
        this.setBounds(0, 0, 300, 300);
    }

    public static void main(String args[])
    {
        java.awt.EventQueue.invokeLater(new Runnable()
        {
            public void run()
            {
                new Expander().setVisible(true);
            }
        });
    }
}

---------- END SOURCE ----------

CUSTOMER SUBMITTED WORKAROUND :
Turn off automatic arrangement of windows with:

Control Panel > Ease of Access Center > Make it easier to focus on tasks > Make it easier to manage windows: check/uncheck the option that says " Prevent windows from being automatically arranged when moved to the edge of the screen "