This particular issue differs from the Google Chrome inset box-shadow bug on Windows, not on Mac: Better workaround?
However, it appears to be connected to the problem discussed in: Weird box-shadow artifacts in webkit.
When applying an inset box-shadow to a text input, strange artifacts (like another inset shadow around the cursor) seem to appear upon key press on Chrome (14.0.845.202) / OS X Lion.
An example showcasing this can be found here: http://jsfiddle.net/pK2PP/17/
Is anyone else experiencing this issue or able to provide a solution?
UPDATE: Here's a screenshot for reference: https://i.sstatic.net/jmQRV.png