Since I found this thread on Google when searching for a solution, I am posting up a bit more information even though it is a bit old.
iherchenroder's comment is correct. When I pulled the rebound nut back off I figured out that the reason that this happens is because the internal rebound adjustment gets turned as we unscrew or screw the bottom nut on the damper side (the nut under the rebound knob).
In my case, the rebound knob was stuck fully clockwise and could not be turned in either direction, the internal rebound adjustment was seized at the end of its range because the adjustment was being turned as I tightened the bottom nut. To fix this I had to unbolt the bottom nut, stick an allen key into the damper, and turn it counter clockwise to break the rebound adjustment free. It actually took a bit of forcing and let out a squeak sound. Then, once it was free, I reattached the bottom nut and started to screw it in, every few turns of the nut I would turn the knob counter clockwise a few clicks to prevent it from getting seized at the end of its range.