Yes, you are right. That is strange. The sequence is only 277 residues.
I experimented a bit, and it turns out that when I add newline to the end of the file things work just fine.
fasta /tmp/50438.seq1.newline /tmp/50438.seq2.newline > /tmp/50438.grasta_result.newline
# fasta /tmp/50438.seq1.newline /tmp/50438.seq2.newline
FASTA searches a protein or DNA sequence data bank
version 36.3.6 Sep, 2013(preload9)
Please cite:
W.R. Pearson & D.J. Lipman PNAS (1988) 85:2444-2448
Query: /tmp/50438.seq1.newline
1>>>seq1 - 342 aa
Library: /tmp/50438.seq2.newline
278 residues in 1 sequences
Statistics: (shuffled [158]) MLE statistics: Lambda= 0.1118; K=0.0008651
statistics sampled from 1 (1) to 158 sequences
Algorithm: FASTA (3.8 Nov 2011) [optimized]
Parameters: BL50 matrix (15:-5), open/ext: -10/-2
ktup: 2, E-join: 1 (1), E-opt: 0.2 (1), width: 16
Scan time: 0.070
The best scores are: opt bits E(1)
seq2 ( 278) 1854 311.6 1.5e-89
>>seq2 (278 aa)
initn: 1854 init1: 1854 opt: 1854 Z-score: 1640.2 bits: 311.6 E(1): 1.5e-89
Smith-Waterman score: 1854; 100.0% identity (100.0% similar) in 278 aa overlap (65-342:1-278)
40 50 60 70 80 90
seq1 CDQISDAVLDAHLSQDPDAKVACETVCKTGMVLLCGEITSRAVVDYQKIVRDTIKYIGYD
::::::::::::::::::::::::::::::
seq2 MVLLCGEITSRAVVDYQKIVRDTIKYIGYD
10 20 30
100 110 120 130 140 150
seq1 DSEKGFDYKTCNVLVALEQQSPDIAQGVHLDRQEEDIGAGDQGLMFGYATDETEECMPLT
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
seq2 DSEKGFDYKTCNVLVALEQQSPDIAQGVHLDRQEEDIGAGDQGLMFGYATDETEECMPLT
40 50 60 70 80 90
160 170 180 190 200 210
seq1 IVLAHKLNAKLAELRRNGVLPWLRPDSKTQVTVKYIQKNGAVIPVRVHTIVISVQHDETI
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
seq2 IVLAHKLNAKLAELRRNGVLPWLRPDSKTQVTVKYIQKNGAVIPVRVHTIVISVQHDETI
100 110 120 130 140 150
220 230 240 250 260 270
seq1 SLSDMQDALKEQVIKAVVPEKYLDEKTVYHLQPSGRFVIGGPQGDAGVTGRKIIVDTYGG
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
seq2 SLSDMQDALKEQVIKAVVPEKYLDEKTVYHLQPSGRFVIGGPQGDAGVTGRKIIVDTYGG
160 170 180 190 200 210
280 290 300 310 320 330
seq1 WGAHGGGAFSGKDYTKVDRSAAYAARWVAKSLVHAKLCHRVLVQVHLIWVFMKQIKLHIS
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
seq2 WGAHGGGAFSGKDYTKVDRSAAYAARWVAKSLVHAKLCHRVLVQVHLIWVFMKQIKLHIS
220 230 240 250 260 270
340
seq1 KHIVRDW*
::::::::
seq2 KHIVRDW*
342 residues in 1 query sequences
278 residues in 1 library sequences
Tcomplib [36.3.6 Sep, 2013(preload9)] (64 proc in memory [0G])
start: Fri Nov 1 12:24:33 2013 done: Fri Nov 1 12:24:33 2013
Total Scan time: 0.070 Total Display time: 0.020
Function used was FASTA [36.3.6 Sep, 2013(preload9)]