I too have this problem.

This appears to be a duplicate of another bug report, Bug #1293740

I read here( http://ubuntuforums.org/showthread.php?t=2225150 ) that

"Shade no longer works with unity because the unity plugin for compiz
has taken over the drawing of window decorations.
Still works in a non unity session where the window decorations plugin is 
enabled. "

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https://bugs.launchpad.net/bugs/1313446

Title:
  window disappears on toggle shade

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