I cannot reproduce this issue here at our CARE Facility. I've tried multiple USB drives, and used two consoles- one on 1.12 and another at 1.11 firmware. The longest recording was roughly an hour. As Michael pointed out, remember to wait (a couple seconds) for the red light to stop blinking before pulling the USB drive out.
Also check your USB flash drive, itself. Make sure that is FAT32 formatted.