This just keeps happening to me and I don't know why! The cupcake itself is fine, but it seems to have jumped up in its case. Today's cakes were probably the worst so far... The bases of the cakes were about 4mm from the bottom of the cases. I've googled this problem but can't find an answer, so I'm really hoping someone here can help.
Are you by chance from Canada? I only ask because here we call the mythical beast seen in BC Sasquatch (Hence your user name) Where other sitings usually in the US call him Big Foot...or do I have it the other way around...anyways...LOL
It is probably a levening issue. Can you post the recipe? I had this happened to me once and, the next go around I added in a tbsp of baking powder and they baked up perfectly.
Thanks for replying! Here's the recipe - 110g sf flour, 110g caster sugar, 110g marg, 1tsp baking powder, 2 eggs, 1tsp vanilla essence. Whisk all ingredients together well (I whisk for 3-4 mins), bake for 20 mins at 160 degrees.
Kiddikakes, I'm from the UK! Sasquatch is the nickname my husband has always called me - we've been together 10 years now and I really can't remember how it came about! Over here, a Sasquatch is also called the Abominable Snowman 
Ahh.. yes..I knew that over in Europe..Cute name for yah!!
OK, while I'm not 100% familiar with this type of recipe (which I believe is referred to a fairy cake). And based on that, the ingredients seem sound so, it may be the method that is not giving you proper levening. In Bakewise, the author explains that baking powder doesn't create air bubbles, it only expand on what exists in the batter and, the creation of air bubbles happens during the initial creaming stage before the eggs are added. So, maybe keep the ingredients the same but, change the method. Cream the butter (or in this case margarine) and sugar till pale and fluffy (I usually do about 5 minutes in my stand mixer) then add the eggs on at a time. Add the vanilla and then the flour/baking powder until combined.
I also just did a quick google search and, found a fairy cakes recipe with this similar method used:
http://www.ivillage.co.uk/the-perfect-fairy-cake-recipe/78582
This uses no baking powder but self rising flour so, in theory if you are already using self rising flour, you could probably omit the baking powder all together.
Hope that helps.
Thanks for that info Maybe I'm whisking it all too much then. I'll try doing it in stages like you suggest. It's 9.25am here in the UK so I'll try baking some more this afternoon and report back. (I have a 12 week old baby so that's why I was posting at silly o'clock!
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