Steps to reproduce:

1.Open a page with VE
2.Insert an image
3.Go to Media Settings of that image
4.Insert another image inside it in the General Settings section
5.Go to Media Settings for that image and set the Image type as Frameless and keep the position to right

Observed Result:
The image resize handlers appear at all four corners instead of appearing only at bottom left corner

See the screenshot attached

Test Environment: http://en.wikipedia.beta.wmflabs.org/
Browser: Chrome Version 26.0.1410.65
OS: MAC OS X 10. 8. 5

Version: unspecified
Severity: normal