Yes, squeezelite versions after 1.7 have a defect that causes short duration MP3’s to fail. What you are seeing above is exactly the symptom of that problem.
There’s some discussion on this issue here.
I found a temporary workaround for the issue. Another forum member, @g_g_rich, was kind enough to build a version of squeezelite for piCorePlayer with the workaround for the issue until Ralphy can do a proper fix. Not sure if this would work for you (I don’t know much about moode audio).
You also could post a “me too” issue here, which may help with prioritizing a permanent fix.
http://forums.slimdevices.com/showthread.php?97046-Announce-Squeezelite-a-small-headless-squeezeplay-emulator-for-linux-(alsa-only)&p=875087&viewfull=1#post875087
Edit: Just read a little about moode audio – looks pretty nice. Perhaps you also could contact the moode audio developer to explain the issue you’re having with squeezelite. He might be able to help with a fix.