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The Velbon D-400 has a so-called "fluid head", where fluid damps movements to smooth video pans. That damping fluid probably leaked.
I think it's less severe: look at the images on the page you linked to. The side view that shows the bracket shows how the bracket impinges over some of the screen hinge, so while you do have some movement you won't have full movement. The two images that show the LCD screen extended probably are showing you the limits of movement, before the screen bumps ...
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