A trailing dash in a domain name makes validator fail?

From: Diman Grozny (evil1@hotbox.ru)
Date: Wed, Jul 18 2001

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    Message-ID: <002f01c10fa1$2640d960$4d782b18@CR194084C>
    From: "Diman Grozny" <evil1@hotbox.ru>
    To: <www-validator@w3.org>
    Date: Wed, 18 Jul 2001 11:48:50 -0400
    Subject: A trailing dash in a domain name makes validator fail?
    
    Hi!
    It appears that validator fails to validate any URL that has a trailing "-" in a part of the domain name. For example, I tried to validate http://clan-xz-.hotbox.ru and it failed. The site definitely exists at that address, but the validator reports "Bad Hostname".. I've also tried other URLs with a trailing dash and had the same effect. Replacing "-" with "%2D" doesn't help.
    What could be the problem with that?
    Thanks