How are you connecting to the other machine? If it's by ssh in a terminal, then this might be openssh's fault (although I have precisely no idea how; this just doesn't fit any reasonable model of how ssh works ...). However, I think it's more likely that you're using some KDE feature for connecting to other machines using the SSH protocol. The kioslave for sftp uses libssh rather than openssh, and in any case it seems likely that this would be a bug somewhere in the KIO subsystem in this case.
How are you connecting to the other machine? If it's by ssh in a terminal, then this might be openssh's fault (although I have precisely no idea how; this just doesn't fit any reasonable model of how ssh works ...). However, I think it's more likely that you're using some KDE feature for connecting to other machines using the SSH protocol. The kioslave for sftp uses libssh rather than openssh, and in any case it seems likely that this would be a bug somewhere in the KIO subsystem in this case.