After playing for a while, the graphics will start to flash, usually white, or making the world disappear. It won't go away until the entire client is closed.
Affected graphic cards:
OpenGL: Intel(R) HD Graphics 4000 GL version 4.0.0 - Build 9.17.10.2828, Intel
OpenGL: Intel(R) HD Graphics 4000 GL version 4.0.0 - Build 9.17.10.2932, Intel
OpenGL: Intel(R) HD Graphics GL version 4.0.0 - Build 9.17.10.2843, Intel
OpenGL: Intel(R) HD Graphics 3000 GL version 3.1.0 - Build 9.17.10.2849, Intel
OpenGL: Intel(R) HD Graphics Family GL version 3.1.0 - Build 8.15.10.2372, Intel
OpenGL: Intel(R) HD Graphics 4000 GL version 4.0.0 - Build 9.17.10.2817, Intel
OpenGL: Intel(R) HD Graphics 4000 GL version 4.0.0 - Build 9.17.10.2849, Intel
OpenGL: Intel(R) HD Graphics Family GL version 3.1.0 - Build 8.15.10.2622, Intel
OpenGL: Intel(R) HD Graphics GL version 3.1.0 - Build 9.17.10.2867, Intel
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Please force a crash by pressing F3 + C for 10 seconds while ingame and attach the crash report here.

^crash report added.

Hmmmm...
Level storage version: 0x00000 - Unknown?

Possibly driver issue. Mine is:
OpenGL: Intel(R) HD Graphics 4000 GL version 4.0.0 - Build 9.17.10.2932, Intel
And works fine even before update (although I don't remember what version it was before update).

OpenGL: Intel(R) HD Graphics 3000 GL version 3.1.0 - Build 9.17.10.2849, Intel

Moved all the graphic cards from the comments to the description.

Fixed by allocating more RAM to minecraft.

Please define "more".

Does the amount of RAM allocated to Minecraft really affect the graphics card?

This happens for me very frequently in LAN multiplayer. I don't know if this would affect it but I was playing with my friend, no internet, and 2 computers hooked through an ethernet cable.
Does this still happen in 1.5.2?

Are you asking if it has been fixed or if it generally happens in 1.5.2 because we are still in 1.5.1
Please try out the latest 1.5.2 pre-release from http://mojang.com/2013/04/1-5-2-pre-release-and-13w17a-snapshot-oh-my/ and let us know if you still experience this issue.

This .jar file is different from what the normal one is. Do I treat is as a regular snapshot and delete the old minecraft.jar file or do I just place it in the .minecraft or what?
Just start it from the new launcher.

Is this still a concern in the current Minecraft version? If so, please update the affected versions in order to best aid Mojang ensuring bugs are still valid in the latest releases/pre-releases.

No more reported issues about this, resolving as fixed.

The interesting thing is that this graphical glitch does not happen in superflat worlds. Yes I have this bug too but it does not start in superflat worlds. Perhaps this could have something to do with world generation.

I still have the bug on my Asus n76vj with hd 4000 driver V9.17.10.2875.01 in 1.6.2 minecraft version

@Keller Anthony: Old or new launcher ? What Minecraft version ?

Optifine seems to be the problem