NEX5 Flash and Shutter
I think it went to nightshot. Nightshot tries to combine a normal exposure without flash with a slight flash for the subject. That way you do not get a white subject with black surroundings (because of 1/60th shutter for example), but it will freeze the subject with the flash and stay open longer to allow the environment to come through as well.
2" is madness of course.
Consider shooting in a non-iAuto mode with your flash.