I consider this behaviour a feature and not a bug. Sorting is simply sorting and no magic is involved. If you sort want to follow the rules of BibTeX you have to specify a proper sorting order (aka sort.key). This is described in section 1.2.7 of the BibTool manual.
Gerd Neugebauer (Author of BibTool) -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]