Particles not interacting with vertical surfaces of objects

simply open the blend file and press play
the first cube that the particles pass through is set with ‘kill particles’ , all particles going through the vertical faces are not affected
the second cube has particle damping set to maximum, and again its like the cube is made out of only the bottom and top faces
particleproblem.blend (930.2 KB)

the problem seems to be that particle system collisions ‘break down’ once you go outside 255 blender units in any axis