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As it turns out, there are several things wrong. Here is your fiddle updated.

http://jsfiddle.net/LKwCS/1/

The editor was detached from the document body when the tree was redrawn and the editor data held a reference to a node long gone. Unfortunately, there will be no further versions of YUI2, this is a clumsy patch, the real fix would require a little correction here and there.

BTW: You don't want to subscribe to the double click over and over on each redraw, since the tree is still there and the original subscription still valid.

This is a better patch:

https://gist.github.com/2601422

Replace the patch I suggested in my previous post since it is contained within this.