Have you reset the Type Tool yet?
Other than that are Photoshop and OS fully updated and have you performed the usual trouble-shooting routines (trashing prefs by keeping command-alt-shift pressed while starting Photoshop, 3rd party plug-ins deactivation, system maintenance like repairing permissions, purging PRAM, font validation, etc.)?
Another (faint) possibility might be that the image has been rotated with the Rotate View Tool …
it wasn't rotated (I checked) but resetting the tool seemed to fix it. I've never had to reset a tool before so I learned something new. Thanks for the quick help.
By the way, I guess that you know it, Christoph, but I usually reset a tool by doing a right-click on its icon in the option bar.
The way you showed works as well, and it is easier to show in a screen capture.
Khal, the text was upside down, with "V" looking like this " ^ ", or were the characters on top of each other?
I have to admit that I didn’t know that option.
I've never had to reset a tool before so I learned something new.
And just to complete the discussion a bit more... The REASON you might need to "Reset" a tool sometimes is that Photoshop remembers the settings that were last used for that tool, for convenience. It's not corruption or magic. Adobe figures that if the user was entering some upside-down (or stretched or faux bold or whatever) text, he/she might want to enter more just like it next time they used the tool.