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I tested it on my iPad2, Android client and flash client and did not experience this, I'm not really sure what to make of it.
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Did not work for me on android, nor flash. Maybe it only works for iPad 2.
Asked a friend, he said that he couldn't see the search option either, and had the yellow bubble by chat as well. (He is on PC)
The yellow circle appears after you tap on furniture, and then close. Stays there, until you log.