Simultaneous transport and magnetization studies in Bi2Sr2CaCu2O8 crystals at elevated currents reveal large discrepancies, including finite resistivity at temperatures of 40K below the magnetic irreversibility line. This resistivity, measured at the top surface, is non-monotonic in temperature and extremely non-linear. The vortex velocity derived from magnetization is six orders of magnitude lower than the velocity derived from simultaneous transport measurements. The new findings are ascribed to a shear-induced decoupling, in which the pancake vortices flow only in the top few CuO2 planes, and are decoupled from the pinned vortices in the rest of the crystal.Transport measurements are one of the most common methods to study vortex dynamics in superconductors. The derived resistivity ρ describes the vortex motion as a function of temperature, field, and the applied current. In high-temperature superconductors the situation is more complicated due to their high anisotropy and layered structure. The corresponding resistivity has two main components, the in-plane resistivity ρ ab and the out-of-plane ρ c , with typical ratio of ρ c /ρ ab ≃ 10 4 in the normal state of Bi 2 Sr 2 CaCu 2 O 8 (BSCCO) crystals 1 . As a result, the measured resistance R is a non-trivial function of sample geometry and contact configuration 1,2 , which is further significantly complicated by the nonlinear current dependence of ρ ab and ρ c . Yet it is generally assumed that the physical mechanism that governs the dissipation can be described in terms of current density, namely, the local values of ρ ab and ρ c are determined 3,4 by the corresponding in-plane and out-of-plane current densities j ab and j c (ignoring possible nonlocal effects 5,6 ).In this paper we demonstrate that in highly anisotropic materials like BSCCO this assumption may not be valid. We find that at elevated currents an additional new term, the c-axis gradient of the in-plane current dj ab /dz, becomes the dominant parameter in the description of the local dissipation. This current gradient induces large velocity gradients dv ab /dz of the pancake vortices in the different CuO 2 planes, leading to their decoupling and to corresponding dramatic increase in ρ c and anisotropy γ. In the presence of inhomogeneous currents, this mechanism results in fundamental changes in the transport behavior, including large measurable reentrant resistance well below the magnetically determined irreversibility line (IL).The studies were carried out on several high quality BSCCO crystals 7 , with T c ≃ 90 K. Four wires were attached to the gold pads evaporated on freshly cleaved top ab surfaces, as shown schematically in the inset to Fig. 1a. The bottom surface of the crystals, free of electrical contacts, was attached to an array of 19 2DEG Hall sensors 8 , 30 × 30 µm 2 each, allowing simultaneous resistance R and local magnetization measurements in the presence of transport current. In addition, several crystals were irradiated by very low doses of 5.8 GeV Pb ions to produce columnar...