January 15th, Ben reported that Yahoo Search Replacing Site Titles in Search Results Listings, and then on January 17th, I dug into it more with Danny to come up that we believe the titles were from anchor text, specifically internal anchor text. In any event, Tim Mayer of Yahoo! has commented at our site saying it will be fixed tomorrow (i.e. today).
We launched a fix to the issue with lower case titles coming from anchor text. You should notice some changes tomorrow. Tim
After a quick check of one of the results that had this issue, i.e. a search on searchbliss, the number one result no longer is pulled from anchor text.
Before:

After:

Thanks Yahoo! for fixing that! What exactly was happening? We have not received official confirmation on our theory.
Forum discussion continued at WebmasterWorld.

Comments:
SearcH EngineS WeB
01/24/2007 12:47 pm
It was because of this comment last week by... Guess Who! http://www.ysearchblog.com/archives/000397.html#comments
Barry Schwartz
01/24/2007 01:18 pm
Um no... He is well aware of these reports, posted at SEL and here and WMW and I also emailed Tim. But you can be right...
David Eaves
01/24/2007 03:50 pm
I noticed this too, this is the 1st I have heard anybody else talking about it, I have only just realised how regularly this blog get's updated, no wonder you won that award.
Chris Boggs
01/24/2007 05:18 pm
c'mon Barry you know it was SeW who we can thank for this. Give the guy his props! :p
mattt
01/28/2007 11:32 am
our results still show anchor text as today 1/27.
۞ Search Engines WEB ۞
02/08/2007 03:59 am
Actually they are now using the H1 or certain dominant Bodytext as Titles... The UserName in the Comment was done to Illustrate this point.......... http://search.yahoo.com/search?p=search+engines&toggle=1&cop=mss&ei=UTF-8&fp_ip=UK&pstart=1&fr=yfp-t-501&b=31 alltheweb.com/search?cat=web&cs=utf8&rys=0&itag=crv&_sb_lang=pref&q=search+engines&o=30