The bugged item is an oxygen tank. It's name has been changed to 'Tethers', and it is no longer usable. It can be removed, moved, dropped, and picked up.
It is incapable of being used as tethers. (Useless item)
Cause: Unknown, I was crafting a bunch of tethers at the time, but it was empty while doing so. However my inventory was full, so tethers were dropped while crafting. I do not know if it was the crafting that caused it, or other factors. I did not notice the bug until some time after. (Death from suffocation)
Notes: I have an unlisted YouTube video of the bug, and a demonstration of it. I will keep the item in-game to play with an experiment to learn more. I do not expect a fix, or a solution to this. If anyone needs more information, please request it.