The funky 'bolt holdback' feature is indeed as it is designed to operate. There were many variations of this design over the years, from several manufacturers and under different 'store brand names'.
Mine is the Springfield M87A. It is quite a good shooter, and puts my much newer Ruger 10-22 Wally Mart Special rifle to shame.
Numrich has the parts if you need anything - I believe they bought out the parts stock when this rifle was finally discontinued.
Make sure to clean the magazine tube - internal and external. A lot of owners forget this step.