Bug found on http://pastebin.com/ms1g5d4B . When the Bauble runs out of durability (see line 51), the Bauble plays the break sound, but does not break. Instead, it is replaced with a full durability Bauble of the same type.

Baubles aren't really coded to break at all - if a mod is damaging them for some reason that mod needs to "break" the items in the proper fashion.