This is a result of spawning a submarine into the terrain. The sub is trying to stop running into the acid mushroom you are being prompted to pick up. But there is not sufficient energy in the system to do so and as a result it is wollbing back and forth.
This has happened to me before. One time I was down in a mushroom cave and spawned a Cyclops since I wasn't sure what was down here and wanted to stay alive. Well, the Cyclops spawned half in a rock. Alarms were blaring from it and it was having a seizure flipping every direction. It even managed to kill me when I went close.
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Recent update seems to have some bugs.