As you can clearly see from the video, there is an unusually long time between when I press the button and when it releases. This problem also applies to things like pressure plates. ThrownPotion entities incorrectly display as a splash Awkward Potion (or any blue base potion) and break shortly after hitting the ground.
Ignore the bit at the end of the video.
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What is happening in the server console? Do you have a lot commands running?