Andy Gill writes: consider the following code

       f = g (case v of
                V a b -> a : t f)

where g is expensive. Liberate case will turn this into

       f = g (case v of
               V a b -> a : t (letrec f = g (case v of
                                             V a b -> a : f t)
                                in f)
             )
Yikes! We evaluate g twice. This leads to a O(2^n) explosion
if g calls back to the same code recursively.

This may be the same as Trac #1366.