Not really a bug, but definately an issue and should be addressed.  The text on shortcuts rarely displays fully and has the same limitations as the standard desktop icon view, which normally allows only two lines of text before being cut off, with the line lengths being relatively proportional to the icon size.  This means if you want to decrease the icon size, you will either have to drastically decrease the text size (which under 8 is almost unreadable to me), or deal with very obscure file/path names because it only has enough room to show maybe 6-8 letters at most.