I've had pretty consistent issues with capes and the various Mini Modes. Essentially, capes do not change size when you change in and out of Mini Mode. In any mini mode (regular and undefined), when you first activate it (off --> Mini), capes do not scale and will remain inappropriately large. Similarly, capes will remain inappropriately small when you turn mini mode off. This is true for every cape style I've tried. This can be remedied by entering a new zone, which will cause the capes to correctly scale once you finish loading.
