[HELP] Mute button in whisper mode mutes remote callers

I am currently using:
Asterisk 1.4.22
A Cisco 7960 IP Phone

When I connect two other phones I am able to whisper to one or the other through a third phone however while doing this if I hit the mute button not only can the person on the remote line not hear me but I am unable to hear them.

The purpose of this is so that a manager can listen to someone with there 7960 muted almost as if it is monitor mode without distracting them and then if something comes up they can unmute the phone and offer advice.

My guess is that before whisper when there was only monitor there was no mic, so it made sense to have the mute button mute the sound that you were monitoring and then you could return by unmuting without having to connect again. Then when whisper came along this feature was never turned off… am I correct?