Don't know if it helps, but I'm running version 2.3.7.476, and here's my code:
y_rotation = y_rotation + 0.5;
if y_rotation > 359{
y_rotation = 0;
}
fauxton_model_set(model, x, y, z_test, x_rotation, y_rotation, z_rotation, 1, 1, 1);
Here's pics of the cube looking normal and the cube during the squish.

Anything I can do to test, let me know. Fauxton has opened a door into a new project for me and I really want it to work. :-)