SHOECAKE GAMES  First of all... Every level is solvable. That is guaranteed! The reason you cant move that pegit at the bottom is he has nowhere to jump (thats why selecting him shows a red box.) The way to solve that level is to remove the PegIt in the middle first, because he is standing in the way!

Secondly, I'm not sure how you reproduce the bug you mentioned with the arrows. Can you tell me in which order you have to click, and which PegIt? I cant seem to reproduce the bug.

Until the game reaches v1.0.0 it's still considered a beta/test version. However, there are very few bugs discovered so far and all the levels have been solved already.  
(Version 0.9.5)

ANONYMOUS  Level 3 of the demo does not work properly. If you select one of the Pegits, its arrows light up, but if you change your mind and then select a different one, the firsts arrows stay lit making the puzzle hard to see. As is, puzzle three is unsolvable. When you try to select the pegit in the bottom left, all you get is a red box around it and it will not move.

As is, with only three demo levels, one of which doesn't work properly, I'm unimpressed.  
(Version 0.9.1)