This post on indesignsecrets might explain things better. taken from:
"You may notice that if you have a lengthy caption, and you use the Live Caption feature, that the caption doesn’t wrap, and you end up with something like this:
This happens because Live Captions use Text Variables technology, and Text Variables can’t wrap in InDesign. The workaround is to select the caption frame, and choose Object > Captions > Convert to Static Caption, and the text will then wrap properly. You will need to vertically resize the text frame to see the additional line of text."
without workarounds, is this fixed in CS6? I do not have CS6 to answer this question.
I have created a solution for this. More details and demo version can be obtained from the following URL