My unicorn, Aurea, recently became pregnant through the Europa Diversity Project building in the desert. When the baby (http://beastkeeper.com/pet/873591) was  born, it has a red star that I *think* is what inbred pets have. At first, I thought I had just had really bad luck and that a related unicorn was the father (Aurea came from the pound) but when I looked at the baby's pedigree I could see no shared relatives.

Can anyone explain why this is happening?

Degen only goes up or down one grade at a time, the father is Degen 2 so the best his babies can be is Degen 1