Sounds like you are exceeding the limits of some aspect of your system.
With my ancient Logitech Trackman Marble FX, if I flick the ball really fast the sensor can't track it, so the screen pointer stays still while the ball is spinning. Eventually the ball slows down and operation resumes as normal.
It's worth noting that it is easier to spin the ball at high speed in a horizontal direction than vertically.
In my case the Trackman sensor is the limiting factor. But in your case the specs of the CST2545W are very impressive, the speeds it can cope with are better than most gaming mice. Either you are spinning the ball insanely fast or some other part of your setup is creating a bottleneck.
Have you tried increasing the USB polling rate? Is it plugged straight into a motherboard port?