I was just ambushed by a goblin, instead of attacking me, he runs away in fear (you can still see him run, a bit to the south, you may have to expand your DF window a bit)

After going into travel mode the bug can be reproduced by bumping into his 'army' while travelling.

Another morale bug can be found when you travel (in travel mode) about 4 steps east and 5 or 6 down from your original position, you will discover a bandit camp. Most, if not all of the goblins in the camp will run away in fear when you enter the camp.