It's the amount of systems invaded at the same time as sectors increase that made me suspect it is like that.
Oh, by the way, had a 5000 ship Kha'ak invasion the other day.

http://i52.tinypic.com/35cixc7.jpg
http://i54.tinypic.com/xaxnyb.jpg
http://i51.tinypic.com/20pudjb.jpg
Needless to say, the game slowed down to seconds per frame.
EDIT: I have made a few observations of ships with the name "....." that is indestructible. Collateral damage is not enabled, if that was the result of the bug in previous versions.