When looking down with an angle of exactly 90 degrees, xp orbs become invisible and/or start flickering when you are a few blocks above the ground. They don't disappear when crouching, but they still flicker. This bug happens in both fast and fancy, and their shadows stay visible in fancy.
Steps to reproduce:
1. Throw a bottle o' enchanting on the ground
2. Fly about 4 blocks above the xp orbs
3. Look straight down. When moving around, the xp orbs flicker, and when standing still, they disappear. Note that you have to look down with an angle of EXACTLY 90.0 degrees, you can check this in the F3 menu at "Facing:".
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Are you using the "Fast" graphics options?

No. It happens in both fast and fancy, but I am using fancy here as you can see the shadows of the orbs, which is a fancy only feature.

Confirmed for 14w33c (seems the bug occurs at short distances away from XP orbs)
Steps to reproduce
1. Create superflat world (redstone ready)
2. Type command
/summon EnderDragon ~ ~ ~ {HealF:0}
3. Fly approx 4 blocks higher than ground height (Y 60)
4. Look straight down at XP Orbs and move mouse slowly left and right

Confirmed. Happens in fancy graphics.

Not sure if it's related, but the same thing happened for me with sleeping players in the current release, 1.7.10.

@unknown, that would be a different bug.

I reproduced it on a Windows 8

Reproduced on Fast Graphics as well.

The orb rotates until the image of it is placed below ground. It's probably a texture fail for that reason. Just annoying... x'D
[ADDED] It doesn't happen when they are floating.