I'm not sure what setting I turned on, but here's the problem. I'm have a image that I use as a default. I use the marque tool to select what I need copied. After doing a Copy Merged I go ahead and create a new image to paste it on and save. I don't know what setting I turned on but every image that is pasted now has a faded border on the bottom and sometimes on top.
What I and trying to Copy:

What happens after I Paste:
