I've found possibly the same bug, using XFCE 4.8 on Xubuntu with wmctrl or xdotool. I can resize other applications without any issue, but resizing terminator either either tool usually causes the window to 'shrink' until either the vertical or horizontal size is 0, at which points it stops. It doesn't always happen, but its certainly buggy when it does. Using terminator 0.96-0ubuntu1 here.
I've found possibly the same bug, using XFCE 4.8 on Xubuntu with wmctrl or xdotool. I can resize other applications without any issue, but resizing terminator either either tool usually causes the window to 'shrink' until either the vertical or horizontal size is 0, at which points it stops. It doesn't always happen, but its certainly buggy when it does. Using terminator 0.96-0ubuntu1 here.