Could it be that the software measured your starting and finishing point and surmised that you really didn't go anywhere, since start and finish were the same?
I think you are on the right track, it has to be a software glitch of some sort. Since most runs and bike rides, the application that this was designed for, start and end at the same point I don't think that is specifically it. I'll call Garmin later this week and see if they know what is going on.