Hunter Pet's Loyalty Level is dropping without the pet's mood changing. Bug?

Hey guys! I'm not sure if it's a bug or intended so I wanted to ask here first.

My pet's Loyalty level dropped from 4 to 3, but the entire time I kept constantly checking his mood, and it was always happy(the icon was the green smile). So I was never aware there was a problem, because the indicator was the green smile!

Isn't it supposed to go yellow then red first? Or did that not come until later? It's been SO long!

If anyone could help clear that up, that'd be awesome!

Ok what the heck. Now, even though I've been feeding my pet a lot more, he still went down to level 2 loyalty??