Is this a sliding mesh simulation? To me it looks like you are rotating around the x-axis instead of the y-axis as you intended. Are you solving in Fluent? What do the results look like there? If you are using CFX, double check the axis of rotation for the rotating domain.

To answer your question below, yes it could solve without any errors as the information is passed through the interface. This is set up before the solve. We can simulate "unphysical" situations, but it is our jobs as engineers to present only the physical.