kmailrc > 35MB

Today, i did something that caused kmail to cough up. I use gmail with dimap 
and through gmail settings, i "renamed" a label. I came back to my local 
machine and fired up kontact. I'd expect kontact to resync and i don't know 
what is meant to happen between 1) kmail recognizes that the mail folder has 
"moved", or 2) a folder was deleted and another folder was created.

On sync it appears to have recognized the change in folder structure.. the old 
folder disappeared and the new one appeared but i noticed my system almost 
came to a halt. kontact was taking up 100% cpu and nearly about 1.9 GB memory 
(this machine has 2GB RAM). I killed kontact as it was completely unresponsive 
and i tried restarting. This time the CPU and memory usage would show up even 
before kontact showed its UI. I killed kontact again and looked through the 
config files to find that kmailrc was over 35MB in size. The property against the 
new folder had the offending line 
"UIDStatusChangedLocally=0,0,0,0,0,0,0,0,0....." endlessly..

It seems that kmail could not handle such large scale changes or so. Is this a 
bug? I restored kmail config files and data files from a backup and things are 
fine again. I had to restore the apps/kmail folder too as i noticed that after 
the crash all my mails were gone! :(

Would a dev know how this state could have reached?
$ kmail --version
Qt: 4.5.0
KDE: 4.2.2 (KDE 4.2.2)
KMail: 1.11.2
-- 
Cheers!
Kishore