Greetings!
I would like to clarify what you're asking — is the VSF split-brain behavior you're seeing the result of disconnecting both the VSF links and the LLDP-MAD link on one of the switches?
If so, then this is not really an unexpected behavior — if MAD on each member is not able to find the second member of the fabric (because the MAD link on one of them has been disconnected), the switch software operates on the assumption that the other member is down entirely, and assuming both members are otherwise operating normally, this leaves you with both members operating as the Commander of their respective fragments.
The entire purpose of MAD is to provide a means for a VSF member to discover other VSF members in the event of a failure of its VSF links and determine which resulting fragment should remain active. If the MAD link is disconnected on one or both switches, then there is no remaining method for fragment discovery, and so both fragments will assume they are supposed to be active.
Note that in addition to LLDP-MAD or VLAN-MAD, on the 5400R you have the option of using OoBM-MAD, which utilizes the out-of-band management ports to permit discovery of other fabric members in the event of a VSF link failure. It can be enabled using the following command:
switch(config)# vsf oobm-mad