It sounds like you are getting the thumb and mail image files swapped around during the upload...? Remember on the upload screen, the first box is for the image, the second the for the thumb. Try leaving the thumb completely blank and see if the main image still gets distorted? Also can you give an example of an image in your gallery which is showing distorted for you so we can check if it's the same here. And which browser are you using? Have you tried with another browser?

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"you are terrifying
and strange and beautiful
something not everyone knows how to love." - Warsan Shire