If you look at the traffic light pointed by one of your red arrows, the static shadow vertices are cut according to the end of the model where it is drawn on. The model is probably big, so the center of the object is far close to the player and thus it is treated as solid? Does enhancing the number (600 / 12 = 50) of CCollision::ms_colModelCache (0x0096595C) at CCollision::Init (0x00416260) help?
I'll check in a moment. EDIT: Seems like nothing changed.
I've got some screens:
This is shadows visible at area where is player at, height - 2000.0 units. Draw distance is the same as coronas.
When i move player, but don't move camera so it still sees those shadows:
At the left side of the screen i moved camera a bit and then restored the original position. All shadows at that place disappear, but the ones which were visible all the time are still there and the new ones in the new player area appeared.