If you add a cite with the citation tool (e.g. a website with template Cite_web on enwiki) you get the following view:
But it should look like:
Reclicking it (click to another part of the text and click on the cite again) doesn't solve the problem. It seems, that the height is calculated before the content of the template is loaded. If you click edit and cancel the dialog without doing any changes you see the full cite badge.
Reproduced on enwiki.