I am experiencing this bug as well. What's the status? It seems to me that this is a really big problem.
Here's another bug which I think is the same issue: https://hibernate.atlassian.net/browse/HHH-972
Here's an SO discussion I started about this, before finding this bug: http://stackoverflow.com/questions/21489300/should-hibernate-sessionmerge-do-an-insert-when-receiving-an-entity-with-an-id
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