If it was doing since you got it, it's probably not worn out optos (which was an issue with earlier HAPP trackballs, prior to the newer design) Sounds like the controller being used in that unit is the culprit, so fixing it would require two new normal opto PCBs, a replacement wire harness and an external controller like one of our Opti-Wiz boards, or other optical interfaces which are designed to not exhibit this behavior. The HAPP USB unit uses an "off the shelf" chip meant for PS/2 and USB mice, and the designers probably weren't concerned about this occurrence, because it would never happen when used with a mouse.
Unfortunately, such a conversion will cost over $50 to perform, so you'll have to weigh that into your decision to move forward with the fix.