Move, as opposed to Copy, reads the file into RAM, deletes it from the phone, then sends it to the PC. (It's the same when moving between any 2 different storage locations - drive to drive, partition to partition, etc.). If the Move operation corrupts, the remains of the file can have a point linked back to an earlier point, so the computer (or phone, in this case) keeps looping to read what's effectively an infinitely long file - and when the universe ends, if you keep the battery charged, it will still be looping. (Old play on a Broadway show title, "On a Clear Disk You Can See Forever".) I think that's what's happening here - the storage display function hits a looped entry, goes back to a previous entry, keeps reading until it gets to the looped entry, goes back ... over and over, forever. (Since the file is supposedly not in the phone, you can't read it, so only a few functions will suffer, apps like Media Scan won't see the loop (MS only cares where the first block of the file is), so the phone works normally, for the most part.
Copy reads the file, then writes it to the new location - then, if the write was successful, it writes the directory information (which is where the looping occurs if something gets corrupted. When you delete the file (after checking that it was successfully copied), all you change is one byte in the directory, then unlink all the blocks that were occupied by the file. If an unlink fails, you've just made that block unavailable, but that's all.
Moving a file from one place to another on the same device (drive, partition) is just writing the directory information to the destination directory, then changing one byte in the source directory, so there's little chance of anything getting corrupted. The linking information doesn't change. (The file itself stays in the same place in storage, only the directory it's listed in changes.)
So it's always better to copy than to move if the source and destination are different devices.