Thanks everyone for you input. I'm pleased to say that Liquid Force has been in contact with me about this issue. They asked for another video to demonstrate the issue - here it is:http://youtu.be/PnK-4Pqk7og
In regards to everyone's comments: yes the kite is at 10 PSI (And yes it took all my body weight). This is more than recommended but the kite season here is short so I have to make do. I checked the bladder for a twist - nada? I feel that the leading edge needs a larger patch on this joint to stop this problem.
I will keep you all informed on Liquid Force's response.
so it folds only on one wing tip? then check if the back lines and bridles are symmetrical and pulleys functional on both sides equally. double check the bladder in that wing tip. this is the wing tip hard turn curve and when you insert the bladder in the sleeve you can get it wrong.
try this method for bladder insert:http://www.kiteforum.com/viewtopic.php?f=1&t=2359055
there are no miracles, you know. there is perfectly good explanation to any problem.