The material reducer glitched out when I put sand in it twice and first time it couldn't be removed so I expected when I would close it it would give me the sand back but it didn't, it just turned red and didn't allow me to get it back so I reported it and I had to check my version and when I entered my world to show you a picture it stopped and I now put in sand and took out 3 oxygen and it glitched out again!
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Cleaning up old tickets: This ticket had been set to 'Awaiting Response', but has not received a response from the reporter (~3 months+) so is being closed as Incomplete. If you feel this is still a valid issue then please comment, or create a new ticket following the Issue Guidelines which includes steps to reproduce the problem.
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I am having the same problem on windows 10 edition. Whenever you put sand in the material reducer, it just breaks it and whenever you try to use one, even if you break and replace it, you can't do anything to it. I found that the best way to work around it is to leave and rejoin the world. when you do the items stuck in the reducer will be put into your inventory and it will be fixed.