ltrim returns wrong block delta for "Edit block" link.

panels.module

<?php    
    // Line - 1811 - under "panels_get_pane_links_alter"
    // remove the prefix block- to get the name.
    $name_of_block = ltrim( $prefixed_name, $subtype_prefix_hyphen);

    // correct Method
    if (substr($prefixed_name, 0, strlen($subtype_prefix_hyphen)) == $subtype_prefix_hyphen) {
      $name_of_block = substr($prefixed_name, strlen($subtype_prefix_hyphen));
    }