I've seen this happen before, but it usually only happens when the height difference between two cells is too great. You should avoid having 90 degree slopes between cells and always create a more gradual transition.
If you've used a selection box in the heightmap editor and created landscape inside the box right to the edge of the selection without leaving any room for the edge of the map to slope to the next cell outside the selection box, this could happen.
Can also happen at the edge of a quad if you've created landscape right to the edge when it tries to join with the landscape mesh in the first cell in the next quad.
In these kinds of situations, the CS sometimes 'drops' elevation (perhaps trying to 'split the difference' in height between the cells). I've always just 'sewn' them up by relandscaping. I'm not aware of any quick fix.
I don't think it has anything to do with the LOD generation, but I could be wrong.