It would appear this bug is probably related to Compiz/opengl and the
video driver/chipset.

I had the exact behavior occur after having turned off the power
management and screensaver. I had several programs open and I was
switching back and forth several times. When I hit the Display desktop
button the open windows all shifted and an error box popped up with this
statement, "Your window manager does not support the show desktop button
or you are not running a window manager."

I have now turned off all special effects managed by Compiz, the screen
saver and the power manager. I'll update if the problem shows up again.

-- 
Windows shifted and non functional after monitor goes in standby
https://bugs.launchpad.net/bugs/657859
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